Again the materiality concept is supreme.
In case of digital signature exp. - Classify the amount on basis of Time period & those related to next year needs to be classified as prepaid exp. Here, it's certain that benefits will reap in coming years also
In case of Uniform Exp - If it is the strict policy of organization & uniform is changed after every two years, then you can classify the same in current year & prepaid Exp. , otherwise charge the whole amount to P&L A/c.
CAclubindia
