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.

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