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What will be the treatment of a company registration expenses?

is it treated as indirect expense or preliminary expense? it treating as preliminary expense, where with this registration expenses (government registration expenses) appears?

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Question ajoutée par Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group
Date de publication: 2013/06/25
Utilisateur supprimé
par Utilisateur supprimé

company registration expenses treats as establishment expenses & it depreciate on number of years - preferable5 years- & its balance appeare in balancesheet as asset

mohamed mansour
par mohamed mansour , chief accountant , el khatab Co for mills.

If we regarded that the company registration expenses will be classified as preliminary Expenses That mean it will be among the intangible assets and that will not be consistent with The IFRSs because The IFRSs condition that the entity must have the ability to get red of the asset alone to classify it among intangible assets and there for the company registration expenses may be incurred in The first period.

Santhosh Mathew
par Santhosh Mathew , Assistant Manager Finance , GE-General Electric USA

The expenses incurred in setting up a company is to be treated as "Preliminary Expenses" and amortized over a period of5 years.
It should be noted that these expenses are incurred before the company begins functioning.
In case any registration expense is incurred after the company has begun its operations and such registration was not required to legally start operations then the same should be charged to expenses in the year it was incurred.

NADEEM AHMAD KHAN
par NADEEM AHMAD KHAN , General Accountant , DNMK Group

It is preliminary expense, may be capitalised or treat it as Deferred cost to be amortised over a period.

KOSHY THOMAS
par KOSHY THOMAS , Sr.Accountant , AL BADIA JEWELLERY

Expense related to Registration of a Company is treated as preliminary expense,License fee and Licence renewal yearly is a Indirect expense but the payment is for1 year, so shown in prepymnt and amortize it monthly

Mrinal Deb
par Mrinal Deb , Manager - Finance and Accounts , Comfort Diagnostic & Nursing Home

Will be treated as Preliminary Expense which is an balance sheet item(Assets) & to be adjusted against P/L account.
First entry when the registration expense made........
Preliminary Expense.............Dr.
Cash/Bank....................................Cr.
As the total amount paid as registration expense for the business trough cash/bank.
Then every year ...............up to the year to be adjusted Registration Expense ..........Dr.
Preliminary Expense ..................Cr.

SALIK RAFIQUE
par SALIK RAFIQUE , Lecturer , PAC Group of Colleges

Preliminary Expenses are to be written off over the year and remaining will be shown in SOFP as Fictitious Asset.

Kokab Rahman
par Kokab Rahman , Managing Director, Head of Business Development , Radeya Business Services http://www.radeya.biz

While it may be regarded as an asset as some suggest, being amortized over5 years, what about the case where you have to renew the license annually and have to spend nearly the same amount for such expenses each year.
In that case, I think it may be correct to record it as an expense from the start - or an asset but amortize it quarterly.

saji sajisundersingh
par saji sajisundersingh , Senior Accountant-Payable & GL , Dubai Health

preliminary Expenses (under Administrative Expenses)

Asif Umer
par Asif Umer , Accounting Manager , Garden College Ltd

Pre-incorporation expenses......

Khaled Mohee Eldeen Abbas Mahmoud
par Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

treated as preliminary expense (Balance Sheet) and will written off over a period of time (Income Statement).

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