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Pre-Operative Expense

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(Querist)
20 September 2010 Dear Experts,

Audit fees paid before starting the business and after incorporation of company, is it a pre-operative expense?

What will be treatment.
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Hemu Kapoor

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Hemu Kapoor (Expert)
21 September 2010 In my opinion is it a pre-operative expense should be hence be debited under priliminary expenses under Misc asset.
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shakuntala chhangani

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shakuntala chhangani (Expert)
26 September 2010 Hi, as per AS 26, it should be expensed.
Regards, CA Shakuntala Chhangani
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