how should be pre-operative exp. be treated in accounts

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19 June 2010 the pre-operative exp. incurred before the starting of commercial production be treated in boooks of accounts, whether it should be revenue or cpitalised.
what should be treatment of pre-operative exp. in accounts after the starting of the production activity. whether it should be amortised or be capitalised in proportionate value of fixed assets

19 June 2010 Pre operative expenses can be deffered and amortise over the period of time

19 June 2010 you can capitalize to fixed assets in proportionate value of fixed assets or it can written off over period under pre-operative exp


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