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Pre-operating and Pre-incorporation expenses

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Pre-operating and Pre-incorporation expenses

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by AvatarP2-D2.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 15, 2017 at 3:35 pm #407670
    AvatarEhsan
    Participant
    • Topics: 43
    • Replies: 418
    • ☆☆☆

    Dear Chris,

    Could you briefly tell me how should Pre-operating and Pre-incorporating expenses be treated?

    Regards,
    Ehsan

    September 16, 2017 at 9:07 pm #407776
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    I’m not too sure what you mean exactly. If you can elaborate further then I’ll try and help.

    Thanks

    September 17, 2017 at 6:20 pm #407826
    AvatarEhsan
    Participant
    • Topics: 43
    • Replies: 418
    • ☆☆☆

    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.

    September 20, 2017 at 8:20 pm #408125
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    The expenses cannot be capitalised, there is no probable, reliably measurable future economic benefit arising.

    Thanks

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
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