17 May 2010
If directly related to any asset or block of asset, then such expenses should be capitalised. Till such time, show them as Pre-operative expenses in the balance sheet (Asset) - Miscellaneous Expenditure.
If they are not directly related to any asset, then show them as preliminary expenses in the balance sheet (Asset) - Miscellaneous Expenditure
21 July 2010
Mr. Rases thanks for ur reply. But as per my seniors and frens the pre-operative expenditure should be taken as a part of gross block of aasets and not a Miscellenious Expenditure. When work complets we distribute all the POP expenses to respective assets ; however till the allocation made we show it as a part of FA gross block as per Schedule VI of the Compnies Act, 1956. Please clarify if Im wrong?