In a contract, if the design work has been started and incurred some expenses later subsequently borrowed funds and incurred borrowing cost shall we captalise such design cost or charge to p&l
Thread Starter
Thupalli Ramya
CA Final
★ 15K+
18-Oct-20 12:08
The borrowing cost being incurred during when the activities are in progress is capitalised.
Activities may be physical construction /
Technical nd admin. work prior to physical construction.
Condition: Expenditure on qualifying asset being incurred.