Skip to content

Ask the Tutor ACCA SBR

Pre-operating and Pre-incorporation expenses

EEhsan8y ago
Dear Chris, Could you briefly tell me how should Pre-operating and Pre-incorporating expenses be treated? Regards, Ehsan
P2-D2P2-D2Tutor8y ago#1
Hi, I'm not too sure what you mean exactly. If you can elaborate further then I'll try and help. Thanks
EEhsan8y ago#2
Hi Chris, I just wanted to know whether we capitalise or expense the expenses that occur before company's incorporation - pre incorporation expenses, and the expenses that occur after incorporating but before operation - pre-operation. Hope you get it.
P2-D2P2-D2Tutor8y ago#3
Hi, The expenses cannot be capitalised, there is no probable, reliably measurable future economic benefit arising. Thanks
Sign into reply to this topic.