Accounting treatment of preliminary exp post revised sch vi

Treat it as a Non-Current Asset 

so it is shown under the head " " Non-Current Assets " " on Assets side in balance sheet 

i agree with phani kumar

neither revised schedule vi, nor as 26, is expressly stating about the treatment. on what grounds we can shown under other current assets.

pls comment

Extract of Guidance note to Revised Schedule VI is given here, it will be useful for the interpretation and presentation purpose.

As per AS 16 Borrowing Costs ancillary borrowing costs and discount or premium relating to borrowings could be amortized over the loan period. Further, share issue expenses, discount on shares, ancillary costs-discountpremium on borrowing, etc., being special nature items are excluded from the scope of AS 26 Intangible Assets (Para 5). Keeping this in view, certain companies have taken a view that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to 5 years. The Revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective Accounting Standards/practices. Further, the Revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view, entity can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current/ non-current assets”, depending on whether the amount will be amortized in the next 12 months or thereafter.

Originally posted by : suhasini
	Preliminary Expenditure arising out of stamp duty, registration charges & other professional expenses relating to formation of company in were hitherto written off over a period of time ,say 1/10th every year. Under old Schedule VI, the balance unadjusted amount was separately disclosed under the head "Miscellaneous Expenditure". Now under Revised Schedule VI, there is no such head. Considering this, whether such exp. incurred in F.Y.10-11 incurred should be written off 100% in the same year? AS-26 is silent on this treatment. Please guide..

After As 26 has become mandatory, preliminary expense cannot be deferred but has to be treated as expense in the year in which it was incurred ( see para 56). In case where As 26 is applied for first time, the opening balance of preliminary expense has to be transfered to the statement of profit and loss as prior period items in accordance with AS-5

Please some one guide me on following issue-

Wheather preliminary exp.(e.g. Comapny incorporation exp.& other charges) is to be written off in profit & loss statement for first year even though company has no income.