Hello
Company A had incurred expenditure on Advertisement which as per their accounting policy are writting off through Profit and Loss Account over a period of 5 years. i.e Deferred Revenue Expenditure and showing the unamortised amount under the head Miscellaneous Expenditure.
However the company wants to change its policy on the same and want to write off the balance deffered revenue expenditure in books till date through General Reserve instead of debiting annual write off to Profit and Loss Account
The same being adopted due to change in presentation of Miscellaneous Expenditure in Revised Schedule VI applicable from 01.04.2011.
Please advice with the help of necessary provisions and guidelines whether the above changed policy can be adopted by the company or not.
Hope to receive an early reply.
CAclubindia
