Incorporation of business

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shiva ramanjeneyulu (Querist)
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04 July 2008 hi, i have a doubt regarding the incorporation and commencement of business

1 Any profit earned by a company before incorporation of business is considered as pre incorporation profit
however, 'if a public company earned any profit before commencement of business certificate and after incorporation' then what shall such profit be called.

2 can u give me clear information of about when a capital workinprogress and any expenditure earned before or at the starting of the business be considered as capital workinprogress
(RESOLVE MY QUERIES PLEASE)

PC-www.bharadwajinstitute.com

PC-www.bharadwajinstitute.com (Expert)
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04 July 2008 1. It is a post incorporation profit only..PROFIT EARNED AFTER INCORPORATION...

2. capital work in progress refers to the cost incurred in constructing a capital asset which is in progress....

CA. A. Kumar

CA. A. Kumar (Expert)
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04 July 2008 1. Profit earned before pre-incorporation is called, pre incorporation profit, but profit earned after obtaining certificate of commemncement of business is called Profit from business.

2.Expenditure incurred on construction of a capital asset is called Capital work in progress.

Amit Bajaj

Amit Bajaj (Expert)
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04 July 2008 Agree with the above views