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.
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Consent to operate
Replies (3)
Quick Summary
If the permission is given on permanent basis, it can be treated as goodwill, otherwise revenue expenditure.
Respected Sir,
thank for advice
it is a permanent basis but every five years it will be renewed.. so it will be treated as a balance sheet item or p&l
thank for advice
it is a permanent basis but every five years it will be renewed.. so it will be treated as a balance sheet item or p&l
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.
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