Thumar Shital (PCC Student) (241 Points)
19 May 2010what is difference between pre operative expenses and preliminary expenses? where is shown pre operative expenses? please give me example as early as possible.......s
daya shankar singh
(CA ,CS)
(629 Points)
Replied 19 May 2010
Pre-operative exp are those exp which are connected with action of start up of operation such as salary, wages, material etc. .These expenses are capitalised over the value of asset accordingly.
Preliminary exp are those exp which are incurred on the formation of company . these exp are written off over the period from the commencement of operation
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