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Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Dear experts,

I need your valuable advice on the following matter:

I had an existing profit oriented business & earn profit every year. I planned for further expantion of business and start incurring certain required expenses for the expantion project. Expenses are both revenune & capital nature. Expenses of capital nature obviously being capitalised for the project. However, revenue type expenditure can I get recovered/carry forward from my regular business income or tobe ammortised & get recovered from the project income only i.e defeered over the period after the commencement of the project?

Prashant Deochake
Asst.Manager-Finance

C.A.Javid Patel

C.A.Javid Patel (Expert)
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27 January 2011 Dear prasad i m not confirm but my view is that the As per AS - 26 the deferement of expenses not allowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2011 Thanks Javid. You mean all those revenue expenses being incurred should be capitalised?

C.A.Javid Patel

C.A.Javid Patel (Expert)
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27 January 2011 No, the all the expenses needs to charge against revenue.

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Querist : Anonymous