Preliminary Expenses

Anil (1638 Points)

05 June 2008  

Preliminary expenses are written off over a certain period of years u/s 35 D of Income Tax Act. I would like to know :


1)Does Companies Act prescribe any period for writing off of preliminary expenses?




2)Does any Accounting Standard prescribe any period for writing off of preliminary expenses?




3)If preliminary expenses are writing off in full in the first year of operations does auditor has to qualify his report? 


 


Kindly SUBSTANTIATE your answer and answer pointwise.

 


 


Thanks