Treatment of preliminary expenses in balance sheet as per re

show it under head " Other non current assets"... 

First of all no separate discloure of MIsc. exp. in revised sch vi

also as per AS 26 intangible, prelimary exp can't be deferred hence need to be w/o wholly

still if you want to show (becoz of IT) under non current (others)

It can be shown under the heading "Other Non Current Asset" in revised schedule vi or such can be fully written off as said above. Under revised schedule such can be written off but under Income Tax act only 1/5 of the expenditure is allowed in a year. Hence its a timing difference hence as per AS-22, defferred tax liab / asset will be made.  

IN MY OPINION . . it should be bifurcated in other current assets ( which we will w/o in next 12  months) and balance in non-current assets . .

@ Nikhil

It can't be classified under current as doesn't satisfy the defination of Current assets

the word used is REALISABLE within 12months 

@ sonu

''The Revised Schedule VI does not contain any specific disclosure
requirement for the unamortized portion of expense items such as share
issue expenses, ancillary borrowing cost and discount or premium relating to
borrowings. The Old Schedule VI required these items to be included under
the head “Miscellaneous Expenditure.”
As per AS 16 Borrowing Costs ancillary borrowing costs and discount or
premium relating to borrowings could be amortized over the loan period.
Further, share issue expenses, discount on shares, ancillary cost-discountpremium
on borrowing, etc., being a special nature item are excluded from
the scope of AS 26 Intangible Assets (Para 5). Keeping this in view, certain
companies have taken a view that it is an acceptable practice to amortize
these expenses over the period of benefit, i.e., normally 3 to 5 years. The
Revised Schedule VI does not deal with any accounting treatment and the
same continues to be governed by the respective Accounting
Standards/practices. Further, the Revised Schedule VI is clear that additional
line items can be added on the face or in the notes. Keeping this in view, can
disclose the unamortized portion of such expenses as “Unamortized
expenses”, under the head “other current/ non-current assets”, depending on
whether the amount will be amortized in the next 12 months or thereafter.''

source : 220.227.161.86/24323announ14223.pdf

page = 50

I Guess . . its sufficient to prove my statement .

Thank you So much Nikil for upda

Preliminery Expense will be shown in Current Asset as other current asset and you can give a note for other current asset and show the opening less W/o and balance to be carried to B/s