pre-operative expenses treatment

Can preoperative expenses which are of revenue nature be capitalised given the applicability of AS 26 (refer para 56)

PRE-OPERATIVE EXPENSES CAN BE CAPITALISED AND CAN BE AMORTIZED OVER A PERIOD OF TIME

the preoperative expenses of the revenue nature should be capitalized in the ratio of the Furniture & Fixtures: Plant & Machinery from the date of the First Sale made. For eg u take a shop on lease & pay lease rent from say sep. u strt the interiors/const/electrical work in the shop. the compltetion ends in dec & u start sale from the 1st of jan. then the exp of the rent of sep to dec paid will be the preoperative exp & will be capitalized on 01 jan in the ratio of the Furniture & Fixture( Also the interior work cost+ elecrical fitting cost) & Plant & machinery installed at that place on the basis that u paid that rent for the interiors/const/electrical work in that shop.

Dear Sir/Madam,

I want to know about the treatment of pre operative expenses in financial statements as per companies act. Also specify which accounting policy is applicable to it or under which notification it is.

pl tell me the difference between preoperative & preliminary expenses.

what is pre-operative exp is there any diff between priliminary and pre-operative exp

hi friends,

Please let me know the treatment of Pre operative expenses under the Income Tax Act . Further unit purchased some Assets like computer , Vehicle etc. and started construction of building as on 1.1.2007. construction complted on 31.12.2007. Prepoerative exp. also capitalized on 31.12.2007. Prodction started on 1.11.2007 for trial run. Trial run exp & Sale also capitalized on 31.12.2007 in the ratio of fixed assets like building, P& M etc.

Actual production started as on 1.1.2008.

Query?

whether dep. can be claimed for the year 2006-07 under the income tax act 1961 while actual production date is 1.1.2008.

please mention case law or section which talks about the treatment of such expneses or fixed assets purchased prior to commecnement or actual prodcution?

please clarify it----

can depreciation be charged before commencement of business in case of a newly formed company???   if yes..then  as there is no P&L a/c..the same would be treated as pre operative exp..isn't it???

how should the pre-operative expenses (other than those relating to preliminary expenses) which are revenue in nature be disclosed in the financial statements?