Presentation of Statement of Profit & Loss for a Non-revenue Generating Company
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- Last Updated on 24 November, 2023
When a company is incorporated especially for constructing a project and it has expenses on its account such as employee benefit expenses, depreciation & amortization expenses, and other administrative expenses (all kinds of audit fees, repair & maintenance, printing & stationery, foreign exchange fluctuation cost, etc.). All other expenses related to the project are being capitalized.
The management of the company contends that the company is constructing a single project, hence, all the expenses are directly related to the project, therefore, all costs should be capitalized, and no need to draw a profit and loss account.
In order to instate its decision, the management of the company approached the Expert Advisory Committee (EAC) for its opinion.
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