Expenses before commercial telecast

This query is : Resolved

SREE PRAKASH (Querist)
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25 October 2013 Sir
A Television channel company incurs administrative expenses ( salary,rent etc),program expenses,office renovation and f procurement of fixed assets.The company has not yet started commercial telecast but has done test run.My queries are
1. How to treat various expenses before commercial telecast?
2. Whether amount spent for office renovation can be capitalized?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 October 2013 with regards to financial statements, expenses incurred after incorporation are to be charged to p&l account.

Expenses incurred on office renovation, you may consider the same as revenue expense. However, expense related to procurement of fixed asset shall be capitalized.

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