Pre Operative Income
amol (ACC MGR) (204 Points)
19 January 2018Pre operative income from Exchange rate gain of capital goods (machinery) should it be adjusted against Pre-operative Expenses or need to pay Income Tax , kindly guide
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 19 January 2018
Since all the expenditures incurred in pre operative period are taken to CWIP and later on capitalized, so this should be adjusted in CWIP only.