13 April 2010
A Co. runs a solvent plant now it is starting new refinery plant under same premises. Pre operative expenses like License Fees, Vastu Expenditure, Salary to staff, Consultancy Fees etc. are incurred for the same. Whether it should be capitalised or deferred exp?If it should be capitalised then in which head?
13 April 2010
Company is a running company hence these expenses are not preliminary expenses, these are pre-operative expense , it should be capitlized.