Capitalisation of exp or rev exp

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2011 How to capitalise the expenditure incurred on publishing books on various types?
how to present in Balance sheet?

How to w/off over the period of year?
for that what are the standard crietria to decide ?

see,there are many exp eg.amt paid on content writing,cover page,editing etc this are exp are one time before publishing,then how to show in accounts?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

26 September 2011 If you are a publisher, then these expenses would be charged as expenses in the year in which you incurred the expenses, Copyright expenses may be capitalised as Intangible Asset. Expenses incurred on the books not sold at the end of the year should form part of your closing stock.

In case of other enterprise;
depreciation is required to be charged as 100 % in case of annual publications of the books, where as in case of other books, you may charge depreciation at another rate as per the use of that particular book. If life is for 2 years deprection may be charged at 50 %.

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