Query about preoperative expenses

704 views 1 replies

please tell me what is treatment of pre opertive expenses

(relate it with as-26 intangible asset "para56 and para 6" )

a company which not started business from last 10 years and also no certain evidences are there to start business in near future wheather revenue expenses like audit fees and accounting charges which are not related with any fixed asset are charged to profit loss or capitalized and showed under head non current assets

 

please solve my query because there is a lot of confliction between me and my ca.

Replies (1)

The most important thing would be to see if these provide future econimic benefits. Because this condition of para 6 is only further confirmed by para 56. As far as audit fees and accounting charges are considered they do not provide any future economic benefit and hence, should not be recognised as an asset. 

Please note there were will be various other expenses and attention will have to be paid to the nature of each of them.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details