Please provide summary on Ind AS 23 - Borrowing Costs

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Prity asked about 3 years ago

Please provide summary on Ind AS 23 - Borrowing Costs

    14       2 Answer Now Comment Report
2 Answers
Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal answered about 3 years ago

Please provide summary on Ind AS 23 - Borrowing Costs Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognised as an expense. An entity shall apply this Standard in accounting for borrowing costs. An entity shall capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. An entity shall recognise other borrowing costs as an expense in the period in which it incurs them. The Standard does not deal with the actual or imputed cost of equity, including preferred capital not classified as a liability. An entity is not required to apply the Standard to borrowing costs directly attributable to the acquisition, construction or production of: (a) a qualifying asset measured at fair value, for example, a biological asset within the scope of Ind AS 41 Agriculture; or (b) inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis.

    2       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Data?1494421730 rohit awasthi answered about 3 years ago

Dear Friend > Ind AS 23 - Borrowing Costs Under Ind AS 23, ‘Borrowing costs’, borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are to be capitalised. An entity shall recognise other borrowing costs as an expense in the period in which it incurs them. Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of funds. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. An entity shall begin capitalising borrowing costs as part of the cost of a qualifying asset on the commencement date. The commencement date for capitalisation is the date when the entity first meets all of the following conditions: 1. Incurs expenditures for the asset 2. Incurs borrowing costs 3. Undertakes activities that are necessary to prepare the asset for its intended use or sale An entity shall suspend capitalisation of borrowing costs during extended periods in which it suspends active development of a qualifying asset. An entity shall cease capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Thanks

    2       1 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.