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Pre-operative Expenses

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(Querist)
13 November 2009 Can expenses be debited to pre-operative expenses in an ongoing concern for expenses incurred for new ventures or projects (the new venture or project has not yet been started).
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CA. B.SRINIVASULU

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CA. B.SRINIVASULU (Expert)
13 November 2009 Yes you can debit to pre-operative expenses provided you are going to capitalise after the production for commercial sale starts.

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