Pre-operative expenses


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Querist : Anonymous

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Querist : Anonymous (Querist)
02 June 2015 A service rendering company provides services to its Associated company, since the fees receivable from the associated company is on the condition that if loan is approve by bank then rendering company will receive the fees. In such a case how will the such expenses incurred be treated as pre-operative or as routine expenses?
plz reply its urgent

02 June 2015 Treat it as routine expenses.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 June 2015 can you provide logic or reason behind it as i need to expain to client so plzzzzzz

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 June 2015 thanx a lot.can you provide logic or reason behind it as i need to expain to client so plzzzzzz

02 June 2015 Whether you receive the fees are not the expenditure is incurred which can't be deferred so charge it as routine expenditure.

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 June 2015 Thank you so much sir


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