Borrowing Cost
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 February 2011
whether interest paid on loan taken for purchaseing of machinery for expancion of business, is to be capitalised or to be taken to revenue till the time the machinery is actual put to use?
CA Ravi Sisodia
(Expert)
16 February 2011
as per AS-16 interest cost up to put to use of assets should be capitalise.
after put to use of assets interest cost should be treated as revenue and transfer to P/L a/c.
after put to use of assets interest cost should be treated as revenue and transfer to P/L a/c.
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