Pre-operative expenses

Dixita panchal (Student) (211 Points)

11 December 2015  

We have a company A ltd. which is associate company of the B ltd. A ltd is only meant for raisining the Fund for C-  A trust. Trust is working for providing the Fund to new business initiative as an Incubation. However, B ltd. is incorporated for providing consultancy to A ltd for Raising fund.

Now A ltd has not still raised any Fund and B ltd isof opinion that as the A ltd has not raised any fund all expenditure incurred by the B ltd general and administation expenses would be treated as pre-operative expenses. Whether B ltd is correct in it's opinion?????