pre-operative
This query is : Resolved
Hemant Mehta
(Querist)
22 September 2010
Dear Experts,
Audit fees paid before starting the business and after incorporation of company, is it a pre-operative expense?
What will be treatment.
Audit fees paid before starting the business and after incorporation of company, is it a pre-operative expense?
What will be treatment.
22 September 2010
Preoperative expense is a wider term, the
expenses incurred after company formation but prior to commercial production, which includs the normal expenses such as salary
travelling, rent etc. Looking in that angle,audit fee can be classified under pre operative expenses.
expenses incurred after company formation but prior to commercial production, which includs the normal expenses such as salary
travelling, rent etc. Looking in that angle,audit fee can be classified under pre operative expenses.
NISHIT A. DOSHI
(Expert)
24 September 2010
Hi,
Pre operative expenses should be written off to the profit and loss account from the year in which company starts its commercial operations.
REGARDS,
C.A.NISHIT DOSHI
Pre operative expenses should be written off to the profit and loss account from the year in which company starts its commercial operations.
REGARDS,
C.A.NISHIT DOSHI
Hemant Mehta
(Querist)
24 September 2010
Thanks Sir
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