Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Treatment of preliminary expenses under companies act 2013

Save Share

This query is : Resolved

Aswany Ashok (Querist)

02 July 2015 Kindly explain the provisions regarding the treatment of Preliminary expenses under The Companies Act 2013.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 July 2015 Preliminary expenditure may be shown in the balance sheet (Schedule II part-1) under the head 'other non current assets'.Amount w/off yearly may be shown under 'other expenses' in 'statement of profit or loss'(Schedule II part-II).

Alternatively, fully w/off preliminary expenses in the year of occurrence as per AS-26.

Message likes : 6 times

Aswany Ashok

Aswany Ashok (Querist)

02 July 2015 Sir,

Whether there is any provision in the Companies Act 2013 which states that a company should mandatorily write off the preliminary expenses?

Thanks in advance.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now