Please let me know the treatment of following in case of newly formed company.The details are:
1.The company formed 24/12/2007
2.As on 31/03/2007 commercial production not commenced
3.Preliminary exp say Rs.3L
4.Pre-operative Exp inclusive of salary,telephone charges,travelling etc.,say 16L
5.All the above expenses were incurred in pursuance of a project which will commence commercial production w.e.f.1.1.2008
6.My company is a small company with paid up capital of Rs.1L
Is AS 26 is applicable and if yes to what extent
CAclubindia
