No Operations but P & L ?
This query is : Resolved
07 September 2009
A company has been newly incorporated in India which, in the previous year has not commenced it's operations. Since operations have not yet begun, a P & L A/C needn't be prepared.
However, w.r.t Preliminary Expenses/Pre-operative expenses, are we required to preprare a P & L and write off the same, or can we carry it forward to the Balance Sheet.
Please quote relevant sections in this regard.
However, w.r.t Preliminary Expenses/Pre-operative expenses, are we required to preprare a P & L and write off the same, or can we carry it forward to the Balance Sheet.
Please quote relevant sections in this regard.
07 September 2009
Company neednot prepare its P&L a/c as it is not started its operations.You can show the preliminary expenses/pre-operative expenses in Balance Sheet under the head Misc. Expenditure.
07 September 2009
No need to prepare P&L a/c, we have to prepare Statement of Expenditure.
This statement of expenditure contains Preliminary expenses and Pre operative expenses seperately.
These have to be shown in B/S under Misc. expenses.
Preliminary exp. are to be written off in the first year of Commercial Operation and Pre operative expenses are to be Capilalized.
This statement of expenditure contains Preliminary expenses and Pre operative expenses seperately.
These have to be shown in B/S under Misc. expenses.
Preliminary exp. are to be written off in the first year of Commercial Operation and Pre operative expenses are to be Capilalized.
07 September 2009
Do you think is this in conformity with AS-26?, where we are required to write off all intangibles.
07 September 2009
yes,
Preliminary exp. is a deferred revenue exp./ misc exp. but not intangible asset.
we are discussing about misc exp but not intangible assets.
Preliminary exp. is a deferred revenue exp./ misc exp. but not intangible asset.
we are discussing about misc exp but not intangible assets.
07 September 2009
Agree
07 September 2009
Subscribers to the memorandum still have not paid all amount due as on the date of closure of financial statements.
How does this get disclosed in the Balance Sheet?
How does this get disclosed in the Balance Sheet?
09 September 2009
I think you should prepare all final accounts.
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