How to disclose Pre-Operative expense being allocated in not

This query is : Resolved

Vaisakh Jagdish (Querist)
Follow

01 July 2010 A company has commenced its production activities this year. The company during the previous year disclosed all its fixed assets (plant & machinery, building etc) under capital work in progress and other expenses incurred for the project under the head pre-operative expense which separately shown in the previous year balance sheet. This year all the assets were ready to use and has been capitalised. The pre-operative expenses were allocated on pro-rata basis. Last year, in notes to accounts, it was separately disclosed that pre-operative expenses are shown separately as it has to be capitalised on commencement of busines operations. How should i disclose in notes to accounts that i have capitalised the pre-operative expenses on pro-rata basis. Is there any restriction on capitalisation of pre-operative expense on pro-rata basis as per Guidance note.

Rasesh

Rasesh (Expert)
Follow

02 July 2010 To the best of my knowledge, there is no such restriction. A disclosure by way of notes to account should be made stating that pre-operative expenses are capitalised on pr-rata basis on the allocable assets.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Naresh Dhawan

R Prabhudoss

Chnmaya parhi

RAGHUNATH KASIBHOTLA

jayaraman

Subscribe Now

How to disclose Pre-Operative expense being allocated in not

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA