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capitalisation of borrowing cost

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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

07 February 2011 No charges in addition to interest like processing fee,commitment charges,upfront fee cannot be capitalised to that investment

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






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