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Preliminary expenses

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CA Manish Chainani

Business

57 Points Posted on 13 July 2012

hey friends

i have an doubt about preliminary expenses

in a company expenses incurred for incorporation

now what to do.

1) wheather to writte off as per AS-26 they are not quailifying defination of asset

2) treate them as asset. if yes where to show them in revised schdule vi

thanks in advance

Replies (1)

PL REF TO GUIDANCE NOTE ON REV SCH VI (DRAFT). AT PAGE 50 IT IS CLEARLY MENTIONED THAT WE CAN DISCLOSE UNAMORTISED PORTION OF SUCH EXPENSES AS UNAMORTISED EXPENSES UNDER THE HEAD 'OTHER CURRENT/NON-CURRENT ASSETS' DEPENDING ON WHETHER THE AMOUNT WILL BE AMORTISED IN THE NEXT 12 MONTHS OR THEREAFTER.