Interest capitalisation

AS 488 views 2 replies

What is the treatment of interest on loan taken for construction of fixed asset in cash flow statement?

Whether it is to be disclosed under financing activity separately or it is added to fixed asset under investing activity?

Replies (2)

Interest on loan is added to CWIP and in cash flow statement movement in CWIP to be shown.

Whether any reference is given in this regard in Accounting Standard to treat it as cash flow from investing activities.


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