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.
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.
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.
CAclubindia
