hello there,
As I know, auditors fees is a pure post incorporation expense while calculating profit-loss prior to incorporation. But I am finding that both in institutes study matirial and practice manuals solved problems, auditors fees is taken in time ratio. I found no explaination about why it has been treated like that instead of treating it as post incorporation expense. I am confused, please help.
Other comments on this matter are wel-come for clarity
agree with abhijeet deshpande.......
Only company can incur audit expenses that’s why it is purely a post incorporation expense just like share issue expenses.
But it in case of Audit Expenses, it can be allocated in TR as audit is for the full year and not only for post-incorporation period..
Leaving a proper note for the same is preferable in the exam.
Its advisable to leave a note on the way you treat it if you come across any confusion in the exam.
It will treat as TR Exps. ..
CAclubindia
