Hi,
As per Revised Schedule VI the expenses of Company which is in Pre-operative stage where disclosure is required, should it be routed through Res & Surplus.
Thanks & regards
Amber Jain
2 Replies
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 24 August 2012
THE PREOPERATIVE EXPENSES ARE THOSE EXPENSES WHICH ARE INCURRED BEFORE START OF COMMERCIAL OPERATIONS BY THE COMPANY. THE PREOPERATIVE EXPENSES ARE TREATED AS ADEFEERRED REVENUE EXPENDITURE AND AMORTISED OVER A PERIOD OF 5-7 YEARS.
THE PRE-OPERATIVE EXPENSES SHOULD BE SHOWN AS NON-CURRENT ASSETS UNDER CURRENTS ASSETS, ASSETS AND LOANS & ADVANCES.
Amber Jain
(Article Assistant)
(206 Points)
Replied 24 August 2012
Sir,
So under head Other Non Current Assets should it be disclosed under others, and the breakup of Opening balance & during the year expenses required.
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