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What will be the treatment of expenses like car rent, office rent etc before company registration?

is all these comes under preliminery expenses or normal treatment?

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Question ajoutée par Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group
Date de publication: 2013/07/02
Farhad Ali
par Farhad Ali , Accountant , AL Aaly holding

the treatment of expense will be Expense ( rent ) Dr cash Cr

Danish Farid
par Danish Farid , Tax Associate , Limra Law Firm

under preliminery expenses and write off year by year

Ali Akbar
par Ali Akbar , Accountant , Kaloti Precious Metals DMCC

Pre opertating Expense and shuld be write off accordingly..

Muhammad Ismail Farooqi ACCA Member
par Muhammad Ismail Farooqi ACCA Member , Accountant and Grant Assistant , Agha Khan Rural Support Programme

company registration and starting of operation are two different events.
if registration and operation are same then it will be treated as preliminary expenses.
if operation started before registration then it is normal expense.

Mutahir Jariwala
par Mutahir Jariwala , Associate Manager , ADANI ENTERPRISES LIMITED

Preliminary expenses: All the costs that are incurred when a company is formed.

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

it can be treated as Administrative Expense or preliminary expenses depending on company's policy.
If company wishes all of its expense to be capitalized before starting its operation or registration of the company it may be treated as preliminary expenses which will be adjusted with the revenue generating year or directly recorded as administrative expense.

Mujtaba Hussain
par Mujtaba Hussain , Accounts officer , Miraj Entertaiments

these are considered as preliminary expenses and written off every year according to the company's policy.

Yusuf Dalal
par Yusuf Dalal , General Accountant. , Gmamco Contracting LLC

Should be accounted as an Pre Operating Expenses in a profit & Loss account..

 

Javeed Javeed
par Javeed Javeed , accountant , usha foods

 

Expences incurred before commencement of Business.  Allowable business expences are expences that you can claim as dedeuction.

SREEDEVI SUNILKUMAR
par SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

Preoperating expenses are expensed

Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

These are pre-operative expenses and has to be capitalized and write off accordingly

Here one thing need to be clarify that what is pre-operative and preliminary expenses 

 

Pre-operative==expenses before operation /establishment start preliminary==introductory, preparatory expenses after establishment.

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