What is the logic of classifying research and development expenses under operating activities?
What is the circumstance when interest is classified under operating activity?
What is the meaning of 'amortisation of premium on bonds payable'
Menu
Cash flow
Replies (1)
As per AS 26 r&d expenses cannot be capitalised. meaning, it is not considered as an ivestment since there is no certainity of income generation from such activity and hence debited to p&l as an expense. It is an operating expense for the business.
Interest charged to p&l and clasified as operating activity is generally interest on working capital which is taken for day to day operaring expenses.
Not sure on the last point. May be the reserve created is amortised over a period of time the bond is repayable
Interest charged to p&l and clasified as operating activity is generally interest on working capital which is taken for day to day operaring expenses.
Not sure on the last point. May be the reserve created is amortised over a period of time the bond is repayable
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
