Whether intrest on intrest can be capitalised???
CA.Rajesh Verma
(vermaraajesh39@yahoo.co.in (Dubai))
(97 Points)
Replied 01 May 2009
Better to specify your problem. However on gerneral basis, it can be capitlised,
Intt on Intt is called Compound Interest.
As16: " Borrowing Cost are interest.....incurred ...in connection with borrowing of funds."
As Intt on Intt are definetly incurred for funds therefore we can capitalise provided that it is on qualifing asset.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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