banner_ad

Capitalisation of interest to asset if interest is waived

AS 275 views 1 replies

A loan was taken for construction of an asset and interest was capitalized till the date of completion of construction. Subsequently, if the whole of the interest is waived, does the capitalized interest need to be reversed?

In a different situation, if the interest is paid by a third party (government), does the interest need to be capitalized? I suppose not.

Thank you.

Replies (1)
As per as 16 interest on loan taken to be capitalized to asset
The interest is calculated up to the completion of asset.
If after capitalization if the total interest is waived then we have to reduce the capitalized asset.


I'm not sure but in my opinion it will be right.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details