A Private Ltd. Co. having closing balance of Pre-operative Exp of Rs.2.00 Cr under Current Assets in Balance Sheet as at Mar 2012 and production HAS NOT commenced.
The Co. has started production in Aug. 2012.
Now for March 2013, what is the treatment to be adopted for Pre-Operative Exp of Rs.2.00 Cr standing under Current Assets.
Pre-Operative Exp consists of :Salaries & wages, Admin,selling, Financial exp etc. Production has not started since Plant & Machinery is under construction till July 2012.
Pls. Advise.
CAclubindia
