19 May 2008
One of the company is having retail outlets throughout India. The company has opened a new outlet in a major City in India. The expenses prior to opening of the outlet has been accumulated in accounts in a Seperate account "Project Expenses". The company has accumulated the same for 2 Yrs. And transferred all the expenses to the new branch account when it was opened.
In relation to this kindly let me know: 1) Whether the Project Expenses accumulated is to be treated as preliminary Expenses or 2) Project Expenses which has not been claimed in the Previous years has to be treated as "Prior period Expenses"
The nature of Expenses include: 1) Purchase of Furniture 2) Purchase of Computers 3) Conveyance 3) Staff Welfare Etc
CAclubindia
