As 16 borrowing cost
ujjal phukan (article) (40 Points)
12 June 2014ujjal phukan (article) (40 Points)
12 June 2014
JAINENDRA JAIN
(ACS/CA)
(1668 Points)
Replied 12 June 2014
ujjal phukan
(article)
(40 Points)
Replied 12 June 2014
CA. Roopali Kadam
(Jobs on assignment basis.)
(1458 Points)
Replied 12 June 2014
Para 10. |
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any income on the temporary investment of those borrowings. |
Para 14. |
The capitalisation of borrowing costs as part of the cost of a qualifying asset should commence when all the following conditions are satisfied:
|
Therefore Capitalize from 01/07/2010
Borrowing cost = 250000 *(10%-8%)X9/12= Borrowings upto Actual Expenditure x (Borrowing interest rate-Investment Income) x Period for Capitalization
This is what I understand from AS 16.
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)