Treatment of preliminary & preoperative expenses

This query is : Open

Jatin Kumar (Querist)
Follow

12 April 2016 Dear All, I'm preparing accounts of a company which is incorporated in the year 2012 but now it has established it's business and having preliminary and pre operative expenses. My query is how should i recognise it in the accounts as per applicable Standard... Please help.

ROSHAN

ROSHAN (Expert)
Follow

13 April 2016 Hi,
With regard to your Query,
As per AS - 26, Preliminary expenses should be written-off in the Ist year of Incorporation of a Company, and in order to comply with the income tax Act Deferred Tax should be calculated for the same.

Message likes : 1 times

Jatin Kumar

Jatin Kumar (Querist)
Follow

28 April 2016 What if i want to capitalize it?

Sandeep Garg

Sandeep Garg (Expert)
Follow

28 April 2016 In order to capitalization conditions of AS 10 or AS 26 should be met i.e. either it should be directly in relation to a fixed asset or it should meet the definition of intangible asset.

Message likes : 1 times

Jatin Kumar

Jatin Kumar (Querist)
Follow

28 April 2016 Thank You Verry Much. :-)

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Anant Kuber

MAYANK

jayaraman

swaminathan

YARRAMREDDY M

Subscribe Now

Treatment of preliminary & preoperative expenses

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Senior Executive

Manager- Finance and Compliance