11-05-2007, 08:17 PM
Dear Kamran,
Some clarifications are required regarding capitalization of expenses. I mean previously various companies were deferring their expenses before the start of normal profit and loss activities. The present revisions you say do not allow this. I am talking in the context of private companies. Which provisions of IFRS or companies ordinance allowed deferring of expenses? I am not very sure but I think I have seen expenses deferred in current year accounts of a company. (I will try to confirm things).
I thing this revision will require restatement of previous year. I actually want to know how all this will take place. I mean how would the accounts of a company look like which previously had not prepared its profit and loss account and is continuing the practice of deferring its expenses after netting off with income if any?
Some clarifications are required regarding capitalization of expenses. I mean previously various companies were deferring their expenses before the start of normal profit and loss activities. The present revisions you say do not allow this. I am talking in the context of private companies. Which provisions of IFRS or companies ordinance allowed deferring of expenses? I am not very sure but I think I have seen expenses deferred in current year accounts of a company. (I will try to confirm things).
I thing this revision will require restatement of previous year. I actually want to know how all this will take place. I mean how would the accounts of a company look like which previously had not prepared its profit and loss account and is continuing the practice of deferring its expenses after netting off with income if any?
