Pre- operative expense

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2015 what is the difference between pre-operative expenses and preliminary expenses???? and what is the treatment of the both??????????????????

CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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02 December 2015 Pre operative expense means expense start before operation of business starts.

Preliminary expense means expense incurred on opening ceremony of business etc...

Accounting treatment is Pre Operative expense to be amortised in the 5 years (Depends on fact to fact)

Preliminary expense generally 5 yrs amortisation period.