Accounting treatment of factory license fee

Amount paid towards factory license fee will be treated as direct or indirect expense ??
Replies (9)
indirect expenses as it's not related directly to production

thanks sir

most welcome
most welcome

It's like an indirect expense as your starting a factory and God knows if it will be a going concern. I think it will be added to preliminary expenses and amortised. 

 

Renewing it is a direct expense as a going concern will not happen it. This is a controversy. 

I meant WITHOUT A LICENSE FOR A GOING CONCERN, THERE IS NO PRODUCTION AND THUS IT BECOMES A DIRECT COST. 

I'm saying renewing is a directly attributable cost to production. I like more insights. 

I'm saying renewing is a directly attributable cost to production. I like more insights. 

I'm saying renewing is a directly attributable cost to production. I like more insights. 

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