alleryStart learning →Preliminary expenses to set up a new legal entity are:
AAmortised over ten years
BCapitalised as intangible
CExpensed as incurred
DCarried as goodwill
Answer & Solution
Correct answer: C. Expensed as incurred
Start-up costs such as legal and secretarial expenses create no recognisable asset, so they are charged to expense when incurred.
Keep practising AS 26 Intangible Assets
Browse all AS 26 Intangible Assets questions for CA Inter, or explore more Accounting topics.
Related questions
The cost of reorganising part of an enterprise is:Amortising an intangible over 25 years requires disclosing:Excess of enterprise market value over identifiable net assets is:Which of these is a common example of an intangible asset?Impairment of an intangible is tested by applying which standard?An exclusive 30 year toll road right is expected to be used 30 years. Amortise over:Software of Rs 9 lakh, 3 year life, straight-line, nil residual. Value after 2 years?A patent costing Rs 12 lakh has an 8 year life and no third-party buy-back commitment. Ann