There may be so many expenditures cannot be classified as manufacturing, selling, and administrative expenses such as Miscellaneous Expenditures (an Incidental Expense) which may be related to one and more Financial Year. These expenses are not revenue in nature hence capitalized and not written off in a single financial year, hence shown in the asset side of the Balance and carried forwarded.
These expenses are written off in several financial years according to the nature of expenses but there should be a proper logic for allocation in different financial years.
Following are the Miscellaneous Expenditures,
Preliminary Expenses, Development Expenses, Repair Expenses on Plant & Machinery, Research & Development Expenses, Other such expenses which related to more that a year.
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