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For a newly formed entity in the UK, can expenses incurred for startup costs, such as uniforms, be charged off monthly during the year the expense was incurred under IFRS? It is for financial statement presentation purposes only as the expense was incurred in January of a calendar year reporting period.
in General IFRS Discussion by
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2 Answers

+1 vote
Start-up, pre-opening, and pre-operating costs should be charged to P&L as and when incurred as per sec.69 of IAS 38 - Intangible assets. However there is no issue in charging off such expenses in monthly management accounts. What matters is when you prepare statutory accounts you can not have an intangible assets. Ie. make sure all such expenses are fully charged when you prepare the annual accounts which is to be audited by the auditors on the compliance of IFRS.
by Level 2 Member (3.2k points)
0 votes
You should charge to P&L as & when such expenses are incurred. Although monthly accounts are not likely to be audited it is always a best practice to present the correct information as per IFRS