Hi..
ABC Ltd company is developer, and incurred marketing expenses and overheads expenses during the initial year and didn't recognize any revenue in the first year.
my query is, as per AS-2 we can't capitalized these expenses to inventory and as per matching concept we have to deferred this expenses for next year.
is it mean we have to show those expenses into P&L?
Menu
AS-2 & Matching Concept
Replies (1)
marketing expenses and overhead expenses incurred in the initial year should be expense in their profit and loss account in this year. As thease expenses are incurred for the purpose of enhance the revenue in subsequent year and is in nature of promotional expenses.
These are not part of inventory as these are not incurred in connection with inventory.
These are not part of inventory as these are not incurred in connection with inventory.
Recent Threads
- E filing thr net banking for AY2025-26
- PROPERTY REPORTING IN ITR
- F&o profit or loss can show a government emplo
- Tax Query for FY 2024-25
- ITR Offline JSON Utility not showing saved drafts
- Incometax port8 not working
- U4gm-Leveling an Amazon Build with Lightning Spear
- 44ADA income declaration
- Taxation of RSU sold of foreign listed entity by e
- Form26QB in case of death of joint owner (seller)
Related Threads
CAclubindia
