Capital Expenditure

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Prashant (Querist)
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05 June 2010 Hi..

Will loan processing fee and bank commission will capitalized if its related to credit facility which is taken for acquiring office premises

Please let me know.

Thanks,
Prashant

Vimal Saini

Vimal Saini (Expert)
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05 June 2010 Processing fee is one time payment not to be recovered in any case even the surrender of the loan will not entitle u for refund, so be amortised in the year of payment only,

But whn we talk about IFRSs, effective rate of interest is calculated by considering the Processin Fees for capitalization as well as expenditure....