Hi..
ABC Ltd company is developer, and incurred marketing expenses and overheads expenses during the initial year and didn't recognize any revenue in the first year.
my query is, as per AS-2 we can't capitalized these expenses to inventory and as per matching concept we have to deferred this expenses for next year.
is it mean we have to show those expenses into P&L?
No
deferment means to take It as Asset
show it In Other Assets in balance sheet.
then u can charge it to P&L statement in years of getting benefits of such expenses .
Now firstly there is no any scope for take such marketing expenses to Inventory
and as per AS 26 u can't consider such expenses as Intangible also
so I have only one way is to charge it to P&L In first year
CAclubindia
