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Preliminary Expense is the part of Balance Sheet or Income Statement?

How can we deduce this expense?

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Question added by Waqar Khan , Senior accountant , Vikor Enterprises Pvt Ltd
Date Posted: 2015/07/03
Reynaldo Mauleon
by Reynaldo Mauleon , ACCOUNTING SUPERVISOR , Timstate Food & Beverages Corp. Bangkal

Part of Balance Sheet.  All preliminary expenses should be lodged to Pre-operating expense account and later to be amortized over one operating cycle  or as the business start to realized a profit. 

Waqar Khan
by Waqar Khan , Senior accountant , Vikor Enterprises Pvt Ltd

Initial expense incurred in starting business is called preliminary Expense. It reduce by depreciation method.

Ahmed Hassanin CMA
by Ahmed Hassanin CMA , Finance manager , Methode Electronics

Balance sheet  Under assets 

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