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    karunya vadigoppula
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    Borrowing cost includes interest on borrowed money and is capitalized as part of the cost of qualifying assets. Borrowing costs are capitalized if they are directly attributable to the acquisition, construction, or production of a qualifying asset and substantially all the activities necessary to prepare the asset for its intended use are in progress. Borrowing costs are generally capitalized for a substantial period of 12 months or more. Capitalized borrowing costs are charged to the income statement over the life of the related asset through depreciation.

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    Borrowing cost includes interest on borrowed money and is capitalized as part of the cost of qualifying assets. Borrowing costs are capitalized if they are directly attributable to the acquisition, construction, or production of a qualifying asset and substantially all the activities necessary to prepare the asset for its intended use are in progress. Borrowing costs are generally capitalized for a substantial period of 12 months or more. Capitalized borrowing costs are charged to the income statement over the life of the related asset through depreciation.

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    © All Rights Reserved
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    3 views2 pages

    Null 10

    Uploaded by

    karunya vadigoppula
    Borrowing cost includes interest on borrowed money and is capitalized as part of the cost of qualifying assets. Borrowing costs are capitalized if they are directly attributable to the acquisition, construction, or production of a qualifying asset and substantially all the activities necessary to prepare the asset for its intended use are in progress. Borrowing costs are generally capitalized for a substantial period of 12 months or more. Capitalized borrowing costs are charged to the income statement over the life of the related asset through depreciation.

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    of 2

    LAS23:BoRROWING COST

    Racogitton o
    QLtinituon e Kowowin g QuaihHng asuet (0 A) O r O wing couE

    Cot boaD i n g cos


    9 t i n c l u d s intuuut om
    That takis To gu f r inttndid is incwud un
    b a u o w d nmenuy.
    Aubstantial ation to
    paod e all a isition,

    Constuction
    Podution d
    *Substantial puuod 0-A tun
    qaneally, 12month
    Canitalise
    mo `uta owt

    can alsO L Choge to £PL


    Riod
    bstaritial bastd on

    a c cinumstanuu

    Communwnut a C a r u taigatim Suspenauen wonk

    Avoid ouhit wnowei dable

    amd
    aud that a r
    Astaatio Aituation
    botu A tivitu
    Expendituu COst nuaAay to par
    changt Cartaliar i t
    o t h a ouset
    au b n iti
    SPL
    bein lnuvmd
    unCusvud
    Kgueung Cou
    Csation

    B o v o i n g cost
    Canitaiisaion
    Tyn Gtwa Bawwna
    COAt

    Aub Stonttally CaptaA

    au thu actuntis Baowingoit


    necsay, to
    Conualu Colculatu
    up aü udA
    Koouing wiguid Avuagr
    r uts inandid C0t t0 C
    Coritaisatioo Tau
    u r Aall au
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    Cost
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    TOta bmmung Os

    eawnd
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    duung +a puuod
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    (8
    T e m p o a y i n r t s n e u t

    (TakA monts od

    Boowd undu weghtu)


    eamd
    itwit
    educt t
    cost
    toBal boruing
    Lo
    then cartalis/Chaxg to
    Loit
    brruuyng
    SPL um u t

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