Pre-operative expense

Suraj S (Audit Executive) (335 Points)

27 August 2011  

One of my client is a new company incorporated during the F.Y. 2010-2011. It has not started commercial activities. What shud i do to the pre-operative expenses. Can i prepare a P&L A/c ( even though no income is generated for the comapny during the year ) and file Loss IT Return so that my client could claim the loss next year ?  Or shud i accumulate the expenses as pre-operative expenses and disclose it in  the Balance Sheet ? But if i accumulate the expenses how will i amortize it next year ?

 

Looking for an early reply 

 

Regards,

Suraj