14 July 2012
If loan is taken as on 1st august of rs 100000 @ 10% p.a and if qualifying asset is acquired on 1st september, then how much int should be capitalised?
14 July 2012
If the borrowing is identified for the capital investment, then the idle time interest can also be capitalised.
This is common in huge projects where the fund are sometimes received in advance and are temporarily invested in mutual funds or fixed deposits. In this case, income earned on those idle funds is also to be capitslised.
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