AS - 16

855 views 1 replies

Borrowing cost also includes :

i)interest cost and commitment charges

ii)amortisation of discount or premium releted to borrowing

iii)amortisation of ancillary costs incurred in connection with arrangement of borrowings

iv)finance charges in respect of assets acquired under finance lease or under other similar arrangements

V)exchange difference arising on foreign currency borrowing to the extent they can be regarded as an adjustment to interest. cost.

Friends pls explain this point ii) and V in detail by quoting example of each it it is possible.Thank you in advance.

Replies (1)

no (ii) :- this is basically issue and redemption of debenture at discount and premium

  when u issue debenture at discount or when u redeem debenture at premium u incurr an exp of discount or premium this expense  is gradually amortised by writting off to p/l year after year this amortised discount or premium is is taken as borrowing cost

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 17 July 2026
Article Assistant and B.com pass

BANSAL YOGESH AND CO

Gautam Budh Nagar

B.Com

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details