Accounting of increase in authorised capital
This query is : Resolved
10 July 2008
Can any body tell me whether increase in authorised capital is preliminary exp or share issue exp? whether such classification will make any difference?
Also please tell me about writting off the preliminary exp & pre-operative exp. I am bit confused because as per AS 26 & Guidence note on Misc Exp it is to be written of in year in which incurred & as per judgement of some experts it can be written off as 1/5.
Also please tell me about writting off the preliminary exp & pre-operative exp. I am bit confused because as per AS 26 & Guidence note on Misc Exp it is to be written of in year in which incurred & as per judgement of some experts it can be written off as 1/5.
11 July 2008
Expeses for Increase in Authorised Share Capital is Neither a Preliminary exp nor share issue exp.
Fees for increase in Authorised Share Capital is Charged as revenue expense because ROC fees are revenue in nature.
Preliminary exp are not covered by AS-26
Fees for increase in Authorised Share Capital is Charged as revenue expense because ROC fees are revenue in nature.
Preliminary exp are not covered by AS-26
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST rate and HSN code for sale of racing horses
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
