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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Pre-operating and Pre-incorporation expenses
Dear Chris,
Could you briefly tell me how should Pre-operating and Pre-incorporating expenses be treated?
Regards,
Ehsan
Hi,
I’m not too sure what you mean exactly. If you can elaborate further then I’ll try and help.
Thanks
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.
Hi,
The expenses cannot be capitalised, there is no probable, reliably measurable future economic benefit arising.
Thanks