Right Method of Application

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Dear experts,

I need your valuable advice on the following matter:

I had an existing profit oriented business & earn profit every year. I planned for further expantion of business and start incurring certain required expenses for the expantion project. Expenses are both revenune & capital nature. Expenses of capital nature obviously being capitalised for the project. However, revenue type expenditure can I get recovered/carry forward from my regular business income or tobe ammortised & get recovered from the project income only i.e defeered over the period after the commencement of the project?

Prashant Deochake
Asst.Manager-Finance

C.A.Javid Patel

C.A.Javid Patel (Expert)
Follow

27 January 2011 Dear prasad i m not confirm but my view is that the As per AS - 26 the deferement of expenses not allowed.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Thanks Javid. You mean all those revenue expenses being incurred should be capitalised?

Upgrade to CAclubindia Pro. Subscribe Now!

C.A.Javid Patel

C.A.Javid Patel (Expert)
Follow

27 January 2011 No, the all the expenses needs to charge against revenue.

Message likes : 1 times