The Preliminary Expenses in Balance Sheet

      
			              Forum
			            
							              8

		            		LOKESH KUMAR SEN
Accountant, India
			            
The Preliminary Expenses in Balance Sheet

	          		Where are the preliminary expenses situated in the balance sheet?
				      
X

							  			Welcome to the Finance and Investing forum. The topic being discussed here is: "The Preliminary Expenses in Balance Sheet". 
										
Sign up now to gain access.  It's free. 

Comments

																	  	Sort by date
																	  	Sort by rating
																		
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
				              
Leave a comment

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