Whether intrest on intrest can be capitalised???
2 Replies
CA.Rajesh Verma
(vermaraajesh39@yahoo.co.in (Dubai))
(97 Points)
Replied 01 May 2009
Better to specify your problem. However on gerneral basis, it can be capitlised,
Intt on Intt is called Compound Interest.
As16: " Borrowing Cost are interest.....incurred ...in connection with borrowing of funds."
As Intt on Intt are definetly incurred for funds therefore we can capitalise provided that it is on qualifing asset.
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