Can anyone explain me what pre operative expenses are?
How are they to be treated for accoutning purposes?
Capitalise or charge to revenue?
When should they same be done?
At the year end or commencement of commercial production.
In my auditor office, preoperative expenses were capitalised prior to the date when the first sale invoice is raised?
Is it right?
Can raw materials purchases also be capitalised as pre operative expenses?
How to treat preopeartive expenses for return of inome purposewhich are written off during the current year financials
Dear Sir/ Madam,
Please let me know how to give treatment in Return of Income The preoperative expenses written off during the current year and which are of revenue in nature.
CAclubindia
