IND AS 23- Borrowing Costs:
Table of Contents · Definitions · Accounting Treatment: Eligibility for Capitalization Commencement of Capitalization Suspension of Capitalization Cessation of Capitalization · Conclusion Definition: Borrowing cost: The one-time or over period of time cost incurred to procure any funds, which are further to be utilized for new asset acquisition, business expansion or for routine operations, be identified as borrowing costs. Of this cost the one specifically attributable to setting-up of a qualifying asset shall be capitalized alongside its cost of acquisition or production as case be, and rest all be expensed off. This definition also would cover the interest expense relating to Ind AS 109-Financial Instruments, Ind AS 116-Leases and exchange differences as identified under Ind AS 21. Qualifying asset: Asset that occupies a hefty time-frame to be brought to ready-to-use condit...