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Pre Operative Expenses before commencement of production

This query is : Resolved 

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.


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