Treatment of pre operative expenses.
This query is : Resolved
27 September 2011
dear members,
what is the acoounting treatment for preoperative expenses in the case of amalgamation in the books of amalgamated company which is already existed in the amalgamating company.can that expenses be carry forward by that new company & to be write off wholly in it's books or not?
what is the acoounting treatment for preoperative expenses in the case of amalgamation in the books of amalgamated company which is already existed in the amalgamating company.can that expenses be carry forward by that new company & to be write off wholly in it's books or not?
28 September 2011
Pre-operative expenses are to be written off in the books of previous company itself
28 September 2011
Both the methods of amalgation doesn't speak about carrying forward of such expenditure
28 September 2011
The pre-operative expenditure must be transferred to Share Capital A/c
28 January 2012
No it is to be treated as deferred revenue expenses and to be written off in 5 equal installments
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