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Share issue expenses & Expenses relating to increase

This query is : Resolved 

12 June 2009 Dear all
plz tell me accounting treatment of expenses relating to the increase in Authorised Share Capital after the incorporation of company and also the expenses relating to the issue of share during any subsequent year of its incorporation

12 June 2009 dear,

its an expenses of capital nature and u will treat it in the same manner as preliminary expenses.

13 June 2009 For Accounting Purposes, Revenue Expenses.
For Taxation Purposese, Capital Expenditure.

After AS-26 "Intangibles" becoming mandatory there is no such concept as Preliminary Expenses.


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