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Regarding pre-operative expenses

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 August 2011 Dear experts,
A company formed in December 2010 and started production in June 2011. My Query is that :
a) Can all expenses incurred upto 31st March 2011 including audit fees be transferred to prelimenery and Pre-operative Expenses?

b) Or Audit Fees to be shown as Expenses for the year 2010-2011?

Thanks in advance
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
17 August 2011 As like other expenditure audit fee has also to be treated as pre-operative expense.

Further, Preliminary expenses are different than Pre-Operative Expenses.


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