Sir
A Co. has taken a Term Loan for Constructing a Building. The borrowing cost is being incurred from Jan 2011 at the rate of let us say 50000 per month. Again assuming that the firm is not going to put the asset in use till the end of Accounting year ended 31.03.2011. So plz tell me wat to do in this regard as per AS 16 Borrowing Costs. Also, If there is no requirement to Capitalize the Int. cost, then wat would be the Journal Entry for Int. Cost incurred ?
CAclubindia
