Capitalization of Borrowing Cost on Land as per Ind AS 23: Borrowing Costs

CA Rahul Agarwal , Last updated: 08 September 2025 Share Follow on Google News

Question Can the borrowing costs incurred on funds used to purchase and develop land for the construction of a building for its use or sale be capitalized as part of the cost of the land? Solution As per Ind AS 23: Borrowing cost Paragraph 3.2: A qualifying asset is an asset that necessarily t

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About the Author

CA Rahul Agarwal

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I am a qualified Chartered Accountant since June 2022, currently working in the healthcare industry with over three years of experience. With a strong foundation in finance, I am deeply passionate about financial management, reporting, and analysis. Beyond my professional journey, I am a financial enthusiast with a ke ... Read more

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