Dear Sir and Madam,
consent to operate it is capital expenditure or revenue expenditure.
this is one type of permission given by the govt department to start new plant.
If the permission is given on permanent basis, it can be treated as goodwill, otherwise revenue expenditure.
Consider it as revenue expense (P & L item), but apportioned cost; divided by five years of usage.
So, the remaining part will get reflected in BS.
Karia Overseas
Ahmedabad
CA
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