Pre - operative expenses

This query is : Resolved

Vinayak (Querist)
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09 November 2009 Can anyone help me towards the following issue:

Can marketing expenses be a part of Pre - operative expenses under any circumstances?

Guest

Guest (Expert)

09 November 2009 No

They have to be write off as and when incurred.

C.A.Suresh Gupta

C.A.Suresh Gupta (Expert)
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09 November 2009 Yes its possible if expenses incurred for feasible study of market or advertisement exp. before commencement of bussiness, not marketing expenses.

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Vinayak

Vinayak (Querist)
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09 November 2009 Hey Rakesh..

Thanks for the reply..

Will come back to you in case I have more doubts for the same issue..

Vinayak

Vinayak (Querist)
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09 November 2009 Hey Suresh,

The situation with me is of such kind that the company is starting with a new project..
The company is already into its business from long time but is starting with a new project..

Now the company is incurring expenditure some of which are of advertisement nature, some are of Market survey expenses & some expenses are the combination of both the expenses. How can we treat these the expenses whcih are of both nature and cannot be distinguished..