srinivass (CA Final) (2466 Points)
01 March 2011
hi hi hi frends
please tell me about
1.time limit for preoperative expenses.
2.what items can include in pre operative expenses.
3.the loss incurred in the first year of operations can show under preoperative expenses.
4.conditions and time limit for writee off preoperative expenses.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 01 March 2011
Upto the point of commercial Production all expenses are shown pre operative
All Expenses will be dbited to preoperative less Miscallaneuos Income so NET Preoperative expenses will be capitalised
There is no loss that can be shown upto the start of commercail production as it is accumulated under preoperative expenses pending capitalisation
Time limit is upto the stage of commercail production u can accumulate preopertive expenses
srinivass
(CA Final)
(2466 Points)
Replied 10 March 2011
thanksssssssssssssssssssssssssssssssssssssssssssss
CA M. ASIF FAROOQUI
(CA & CMA & MBA )
(308 Points)
Replied 14 March 2011
ALL THE EXPENSES INCURRED TILL THE STARTING OF PRODUCTION WILL BE CALLED PRE OPERATIVE EXPS...IN CAN BE WRITE OFF ACCORDING TO THE COMPNY'S POLICY BUT UP TO MAXIMUM 10 YRS.
NO THE LOSS INCURRED IN FIRST YEAR OF PRE OPERATIVE XPS CAN NOT BE TREATED AS PREIPERATIVE EXPS...
srinivass
(CA Final)
(2466 Points)
Replied 16 March 2011
thanks asif but i dont understand YANGBECKY words
CAclubindia
