CAN PRE OPERATIVE EXPENSES BE CAPITALISED? IF YES, HOW CAN
IT BE DONE?
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Answer Posted / murugesan
YES MR.ABHUSHEK SAID IS CORRECTLY,
I GUESS PEOPLE ARE REALLY CONFUSED WHETHER PRE OPERATIVE
EXPENSES SHOULD BE CHARGED TO P/L OR ITS SHOULD BE CAPITALISED.
ACCORDING TO ME,PRE OPERATIVE EXPENSES SHOULD BE CAPITALISED
IF IT IS OF CAPITAL NATURE OR ELSE CHARGE TO P/L AGAINST
PROFIT OF THAT same YEAR ,
every one has to understood this before accounting.
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