Capitalisation of preoperative exp.?


This query is : Resolved 

22 December 2008 Hello Friends , would you suggest me that how can we bifurcate a Particular pre operative exp. as a Capital exp. or Revenue exp.,Is all the pre operative exp. are capitalised .
suppose if we take an e:g like whether salary of a/cs deptt. during Construction of unit is revenue / capital pre operative exp. and whats the treatment of this exp,

23 December 2008 All the exepenses which is direcly related to the assets should be added to the such assets. Indirect expenses like salary of account department should be allocated propotionately.


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