capitalisation of borrowing cost
This query is : Resolved
NAIMUDDIN KHAN
(Querist)
07 February 2011
We have obtained a financing from bank for additional capital increase in an associate company. There are some cost incurred for arranging finance apart from interest payable to the bank.
Pl advise if the mis cost incurred like commitment charges brokerage etc can be capitalised to our investment in the associate company.
regards
nayeem
Pl advise if the mis cost incurred like commitment charges brokerage etc can be capitalised to our investment in the associate company.
regards
nayeem
Kumar Babu.G
(Expert)
07 February 2011
No charges in addition to interest like processing fee,commitment charges,upfront fee cannot be capitalised to that investment
NAIMUDDIN KHAN
(Querist)
07 February 2011
Dear Mr Babu,
Could you pl provide any ref of standards either AS or IAS in support of the above.
Thanks
nayeem
Could you pl provide any ref of standards either AS or IAS in support of the above.
Thanks
nayeem
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