Treatment of pre operative expenses
Querist : Anonymous
What is the treatment of Pre- opererative expenses like salary, bank charges, R & M(other), travelling etc.
Does they b capitalize or amortize? (if these expenses are done before the commencement of production..)
then where does it should be shown in revised
balance sheet?
Querist : Anonymous
these expenses are of revenue nature..bt as operation has not started yet these are to b capitalize..
bt they do not form part of fixed asset as AS-10 does not apply hear neither AS-26 apply hear.
I now that as per revised balance sheet they will form part of Other Non Current Asset on Asset side/
But my query is how to amortize them..?
or does they be amortize over the period of 5 year subseqently as provided in Sec35 D of Income tax act.
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