06 October 2010
Generally a Private Limited company gets its registration certificate and commencement of business certificate at the time of its incorporation. Suppose if a pvt. ltd company formed on Jan. 2010 and still it is not started its business, then statutory audit fee for the financial year 2009-2010 can becomes part of the pre-operative expenses or not?
If no then what will be right accounting treatment for the same as per GAAP?
01 November 2010
what ever the expenses, it could be rent, statutory audit fee or any other expenses, u can treat them as pre-operative expenses... until the entity commences its commences its commercial operations or it is capable of commencing commercial operations...
CAclubindia
