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AS-10
Accountancy
Can any one explain what is Interest charges paid to o supplier against deferred credit & Why it is not capitalised
Answers (1)
interest expenses incurred on a purchase arrangement where the payment for goods or services is deferred over a period of time, typically beyond the normal credit terms. For e.g. if you buy a product on credit for 90 days and supplier charges interest on it, it is called interest charges paid to supplier. Whether to capitalise or not depends on whether the asset is qualifying asset or not
