shashank kumar singh (ARTICLE) (46 Points)
02 December 2010Hii frnds
I want to know about treatment of pre operative expenses. Pre operative expenses such as rent ,wages, audit fees are capitalised in which head and if these expenses are apportioned to fixed assets then what is ratio? if these charged in the year which production has to be commenced then whole amount has been charged or what is the number of years if it has been not charged in that year?????
Plz solve this query.
Thanx in advance..
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 02 December 2010
I would advise you to read the file, i am providing its ASB opinion on a case.
There is so many mis concept about the treatment of pre operative expenses and many times i gave the answer of this question but there are many different views therefore keeping aside all i am attaching a file here which will give clear understanding n will clear every situation.
All the best and even if u have any query then write me.
I am try my level best to aid u.
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