27 November 2012
There is a Hotel which is under construction since 10 years as there is a dispute between directors and the financial institution and the only preliminary expenditure is legal & professional fees paid by the company. How these Pre-Operating expenses will be treated according to the revised Schedule VI Keeping in mind that business is still in Pre-Operating Period..??
27 November 2012
such Pre operative expenses will be added to the cost of the under constuction property and will be shown as "Capital work in progress".
CAclubindia
