Interested to Buy Any Domain ? << Click Here >> for more details...
Need to know the treatement of Pre-Operative Expenses and
preliminary expenses. How would you differentiate these
two?
- 1 Answers
- 11167 Views
- I also Faced
- E-Mail Answers
Answer Posted / arun
PRELIMINARY EXPENSES ARE THOSE EXP WHICH ARE INCURRED
BEFORE THE FORMATION OF THE COMPANY. EXAMPLE COMPANY
FORMATION EXPENSES INCLUDING FEES PAID TO PROFESSIONALS .
WHEREAS 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 TAX TREATMENT IS AS DONE FOR OTHER DEFERRED EXPENDITURE
AND THE PROFIT & LOSS A/C IS DEBITED FOR THE APPORTIONED
ANNUAL AMOUNT EVERY YEAR.
| Is This Answer Correct ? | 5 Yes | 7 No |
Post New Answer View All Answers
What is executive accounting?
Tell me what are things will not be included in bank reconciliation statement?
VAT PER SURCHARG KAB SE KIS DATE SE LAG RAHA HAI
What is the definition(meaning) for the Final accounts adjustment 'Uninsured goods lost fire'?
HOW TO FILL PURCHASE RETURNS IN VAT 200,IF NOT PURCHASES THE PERIOD?
Define each Flexfeild qualifiers (natural accounts, balancing acc., secondary tracking, cost center)
wht is different between defered tax liablities and defered tax assets??????
Was there a time when you lost the chance to engage a prospect? What happened and what did you learn?
Define and distinguish between flexible and floating exchange rate system. What kind of exchange rate system does china have?
Do you think there is any difference between inactive and dormant accounts?
what is the procedure to appoint an Austrlian citzen as indian company director...
lic (life insurance corporation)how much he or she as to deduct income tax on his gross annual salary. please give with examples
Explain what is bank reconciliation?
what is the impact of bank garantee of rs 100000 on cash flow statement which has been expired...& impact on bank reconcilation statement
while preparing insolvency account deficiency account is wich account? why we do not prepare it with general rules?
