Revised schedule vi

This query is : Resolved

Share Report Follow Query Ask a Query

Jalpa Chandegra - JNC

Jalpa Chandegra - JNC (Querist)
Follow

05 July 2012 Kindly guide about treatment of Preliminery Exp. in Revised Schedule VI.

CA Sripal Jain

CA Sripal Jain (Expert)
Follow

05 July 2012 revised schedule doesnot speak about prelim expenditure,however there is a guidance note on it,where unamortised expenses can be shown under current assets/non current,also p&l account debit side can now no longer be in asset side ,rather it must be deduted from reserves

Message likes : 1 times

Ravikant

Ravikant (Expert)
Follow

05 July 2012 Revised schedule VI does not speak specifically about treatment of preliminary expenses. But as per GN issued by ICAI it says..
The companies can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current/ non-current assets”, depending on whether the amount will be amortized in the next twelve months or thereafter.
So, if the amount will amortise in next 12 months - under Current and if after 12 month - Non-current.

Message likes : 1 times

Jalpa Chandegra - JNC

Jalpa Chandegra - JNC (Querist)
Follow

05 July 2012 Thx......
in Profit and Loss account......what to do about amortized or written off portion of Preliminary Exps. .....
Under Which Head, it should be charged ???

Ravikant

Ravikant (Expert)
Follow

05 July 2012 That will be shown under Other Expenses - Misc. Expenditure as a seperate line item.

Message likes : 1 times

CA Sripal Jain

CA Sripal Jain (Expert)
Follow

05 July 2012 yes ravi is correct

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now