B-com CS CA-Final CFA-level 1 candida
1053 Points
Joined March 2010
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.