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Treatment of preliminary exps

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(Querist)
20 March 2013 As we know exps like Preparation of AOA & MOA and other legal exps are treated as Preliminary exps.
My question is that what would be Accounting Treatment of other than Legal Exps such as Revenue exps for opening co. before commencement of Co, decoration & All other revenue exps.

Kindly reply me by refering AS?
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CA Ayush Agarwal

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CA Ayush Agarwal (Expert)
21 March 2013 In My View AS 26 do not cover the following :-
•Expenditure on exploration, mining etc..- Guidance note in force
•Contracts between insurers and policy holders- AS not yet introduced
•Accounting for discount/premium on securities- AS 30
•Incidental costs for arranging borrowings – AS 30
•Share issue expenses – No where specifically



Alternative option for Preliminary Expenses in Balance Sheet :- We may take the same as covered by Accounting Standard 26 of ICAI on Intangible Assets and write off the expense fully in the year of occurrence.
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