Miscellaneous expenditure not written off

In Non-current Assets

The portion of the expense which is to be wrriten off in the next year should be trf to - OTHER CURRENT ASSETS .& the balance Amount should be transfer to - OTHER NON- CURRENT ASSETS

Please note the Guidence note issued by ICAI on revised Sch VI. "The Revised Schedule VI does not contain any specific disclosure requirement for the unamortized portion of expense items such as share issue expenses, ancillary borrowing costs and discount or premium relating to borrowings. The Old Schedule VI required these items to be included under the head “Miscellaneous Expenditure.” As per AS 16 Borrowing Costs ancillary borrowing costs and discount or premium relating to borrowings could be amortized over the loan period. Further, share issue expenses, discount on shares, ancillary costs-discountpremium on borrowing, etc., being special nature items are excluded from the scope of AS 26 Intangible Assets (Para 5). Based on this views, certain companies have taken a stand  that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to 5 years.

The Revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective Accounting Standardspractices. However, the Revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view,entity can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current non-current assets”,depending on whether the amount will be amortized in the next 12 months or thereafter."