Preoperative Expenses

A G Vishal Kirthic (Chartered Accoutant) (236 Points)

21 April 2011  

Hi Friends,

A company has been incorporated with the objective of carrying out Turnkey Projects. It hasn't commenced its business but has been incurring general admin expenses and project bidding expenses. What is the treatment of such expenditure in Final a/cs. Should that be charged off in the first year itself or should be shown as Preoperative expenses?