Rebate allowed on interest on loan

As per as 16 if u recive any rebate on borrowing cost so u should reduce that rebate from intrest exp and the remaing part of intrest should be charged

IndAS 23 is also saying the same, to capitalise borrowing costs like Harsh mentioned above into the qualifying asset cost. I forgot your doing this project to procure an asset. Capitalise it and amortise it. 

This treatment is like: add the interest expense into asset

amortise it

when you receive the rebate, subtract it from the carrying value of the interest capitalised and revise the amounts. 

This kind of accounting treatment is Ok. The first answer is like ok for all loans which does not fall under borrowing costs standards eg. working capital to buy inventories.

so, capitalise and amortise like above.

create loan & payables entries

 

As Per Ind as 108 / 32, Financial Instrument, You have to find out IRR that is effective rate of interest. apply this effective rate of interest on loan amount to book the interest exp in PL.

in case loan loan is for Qualifying asset, capitalize the interest cost in Qualifying asset. as Per Ind As 23.

hope this is helpful.

Yes this answer could also work out depending upon the nature of recognition: an expense capitalised or expensed. Which ever way you do it, I intend to subtract the rebate in Amortisation schedule just like how you reflect carrying values for floating rate instruments.