ACCOUNTING II (MUHASEBE II) - (İNGİLİZCE) Dersi Intangible Assets and Natural Resources soru detayı:

PAYLAŞ:

SORU:

How long does it take for a company to amortize a preoperating cost?


CEVAP:

Companies make preoperating expenditures when establishing a new business or founding a new branch or continuously expanding of the operations but in return there is no gain obtained. These kinds of expenditures are capitalized as an intangible asset named Preoperating Costs. Because the life of the company is assumed infinite, Preoperating cost are generally amortized within 5 years.