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Asked by rakesh on :Aug. 04, 2018

Is underwriting commission paid preliminary…

Is underwriting commission paid preliminary expenses?

Is underwriting commission paid preliminary expenses?

0

Jeeba Aug. 04, 2018

Since a company can issue its share after the completion of its registration procedure.

It is a cost for the issue of shares once a company gets its own legal identity. It is, therefore, underwriting commission and brokerage paid for shares and debentures should not be included under the head preliminary expenses.

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