11 November 2007
can u please tell me which section of Companies Act deals with preoperative expenses, its treatment etc...Such as whether to be capitalised etc....
12 November 2007
Preoperative expenses i.e preliminary expenses to be disclosed as per Schedule VI of the Companies Act and in the Statutory Report u/s 165 and Statement in lieu of prospectus. But the treatment has not been given in any of the Section of the Companies Act.
Section 35 D of the Income tax Act deals with the preliminary expenses which clearly says about the nature of expenses to to treated as preliminary expenses and the amortisation etc.
CAclubindia
