Pre-operative Expenes

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..... Pre-operative Expenes
Query (Issue) Started By: - CA SUNIL BHANSALI Dated:- 23-3-2012 Last Reply Date:- 25-3-2012 Income Tax
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Income Tax
I have create a company and after incor .....

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..... poration, i incur some pre operative expense and other income like Interest on FDR so i prepare P&L Account to claim these pre-op expense. Now the business of the company has not been started. in next .....

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..... years company has not any income so we are showing expenses as pre-operative expenses. is it ok to show pre-op exp. after preparing P&L account. please tell me proper treatment for the same. Reply B .....

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..... y GOPALJI AGRAWAL: The Reply: Sunil Ji After application of AS-26 on Intangible Assets, the concept of pre-operative, deferred revenue etc do not exist. The preliminary and pre-operative expenses ha .....

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..... ve to be debited in the Profit & Loss account itself. .For detail, please read para 56 of the said standard. AS 26 is applicable for all entities invariably w.e.f. 01/04/2004.
Discussion Forum - K .....

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..... nowledge Sharing .....

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