AS 16

Mithlesh (CA Practice ) (26 Points)

10 May 2007  
hai freinds,
i am in confusion about the treatment of borrowing cost which related to borrowing for advance payment for an asset. That asset takes substential period of time for ready to use or sell in the hands of seller. for e.g. if i pay advance mony for asset on 1st april06 and the seller construct the asset and delever the asset on 1st may 08. what should be the treatment of borrowing cost incurred during the period of 1st april 06 to 30th april 08.should  it to be capitalised or charged to P/ it a qualifying asset for me.