ACCOUNTING TREATMENT OF PRELIMINARY/ PRE-OPERATIVE EXPENSES

1. What are Pre-operative Expenses/preliminary Expenses? A business may incur many expenditures before it starts.  These costs can be called as Start-up costs which consists of preliminary expenses incurred in establishing a legal entity such as legal and secretarial costs, expenditure to open a new facility or business (pre-opening costs) or expenditures for commencing new […]