D.V.Ramakrishna (Asst General Manager - Finance) (24 Points)
13 August 2011Hi this is CA.Ramakrishna. We are paying the additional remuneration to the MD of the company for acquiring new business entities for the existing company. Can we capitalise this?
Arun
(accoutant)
(41 Points)
Replied 13 August 2011
Dear Ramakrishna,
Company's MD - addtional remuneration can be capitalised with the cost of acqision of particular entity.
you may have to quantify the amount attributable to particuar acquisition (s) to arrive at proper amount to capitalise.
else it is revenue expns
Regards
Arun
CAclubindia
