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PREOPERATIVE EXPENSES&PRELIMINARY EXPENSES

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Querist : Anonymous

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Querist : Anonymous (Querist)
05 March 2010 Sir,

If preoperative expenses and preliminary expenses are capitalized to which head we will write off these expenses and how many years it will written off in equal figures.
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Madhusudan Bohra

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Madhusudan Bohra (Expert)
06 March 2010 AS PER ifrs preoperative and preliminary expenses need to be expensed out unless it is incurred for any specific asset.

In case it is linked to specific asset, it should be added to the cost of the asset and depreciated over life of the asset.
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