logo

The Preliminary Expenses in Balance Sheet

Knowledge Center

Finance and Investing

Translatemore

Forum
8
LOKESH KUMAR SEN
Accountant, India

The Preliminary Expenses in Balance Sheet

Where are the preliminary expenses situated in the balance sheet?
 

Rating

 
3
Jaap de Jonge
Editor, Netherlands
 

Preliminary Expenses in Accounting

Preliminary expenses are those that are incurred before incorporation of a company (i.e., commencement of a business firm).
For example:
- Legal fees (like statuary fees),
- Logo and brand design costs,
- The cost of printing and circulating the memorandum, articles of association, and prospectus,
- Expenses for raising initial share capital,
- The cost of printing of share certificates
These expenses are incurred before the start of the company. Their benefits accrue for many years. They are therefore classified as capital expenditure and shown on the balance sheet under Current Assets (subcategory: other other current Assets). They may be written off over a period of (5. Years or amortized within the same year (depending on their size and on local laws).

 
1
Hira Aziz
Entrepreneur, Pakistan
 

Preliminary Expenses of Founders

Preliminary expenses also includes the remenuration of the team that has incorporated the company an... Sign up

 

More on Finance and Investing:
Methods, Models and Theories
Discussion Topics
topic Distress Restructuring
topic How to restore Trust in Financial Markets?
topic New Global Reserve Currency needed?
topic List of Investment Mantras
topic Know your Customer (KYC)
topic Never Waste a Good Crisis as Investor
topic Effect of Interest Rate Raise on Economic Growth
topic Alternative Investments
topic Minority Shares Buyback
topic The Equity Method in Accounting
👀The Preliminary Expenses in Balance Sheet
topic Cryptocurrencies - Characteristics, PROs and CONs
topic Foreign Investment Guarantees
🔥 Financial Management - Definition and Aspects
topic Investing by Business Firms


top

More on Finance and Investing:
Methods, Models and Theories
Discussion Topics
topic Distress Restructuring
topic How to restore Trust in Financial Markets?
topic New Global Reserve Currency needed?
topic List of Investment Mantras
topic Know your Customer (KYC)
topic Never Waste a Good Crisis as Investor
topic Effect of Interest Rate Raise on Economic Growth
topic Alternative Investments
topic Minority Shares Buyback
topic The Equity Method in Accounting
👀The Preliminary Expenses in Balance Sheet
topic Cryptocurrencies - Characteristics, PROs and CONs
topic Foreign Investment Guarantees
🔥 Financial Management - Definition and Aspects
topic Investing by Business Firms
Knowledge Center

Finance and Investing



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.3 - Last updated: 3-10-2023. All names of their owners.




12manage is looking for BA/MBA students. More info.