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Trail run expenses

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(Querist)
02 August 2012 what is the meaning of trail run expenses?? what is its accounting treatment??
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CA. Nitin Agrawal

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CA. Nitin Agrawal (Expert)
03 August 2012 Dear Samriti

Trial run are expenses incurred during the trial run/testing of any industry or plant before any commercial production.

These expenses should be netted with the revenue of the trial run production sale and balance left if any can be capitalised.

Others experts views sought to confirm my views and heartly welcome for any correction.

Best Regards
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CA Ghanshyam Joshi

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CA Ghanshyam Joshi (Expert)
03 August 2012 I agree with CA Nitin Agrawal Well explained
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