Pre-Opeartive Expenditure

549 views 1 replies

Can pre-operative expenditure include expenses like advertisement, salaries, printing and stationery, rent, etc.? Can they be capitalized? 

Replies (1)

Pre-oprative exp is expenses during construction and hence relate to bringing the assets to operating condition. I am not sure if this can be debited to R & D expenses. Primarily pre-operative expenses would relate to payment of salary, wages (indirect), travel expenses, communication expenses, consultancy charges and normal oprating expenses. Hence the question of R & D Expense would have to be decided based on the nature of expenses. 

 

they can b capitalised by apportionment/allocation to assets which are the subject matter of operation..

 

for more info i would suggest go through AS-26.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details