Borrowing cost as- 16

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2015 if there a situation that machine take time to get it self ready 9 month period than borrowing cost is capitalize or not .
kindly guide us in above situation .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

19 November 2015 Yes it can be capitalized. Refer the AS 16.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2015 but sir in AS -16 it is given 12 months period for qualifying assets

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

19 November 2015 ORDINARILY a period of 12 months is considered as SUBSTANTIAL. A shorter or longer period may be considered as per the fats and circumstances of the case

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now