Saturday, February 4, 2012

AS 16

Simple definition of borrowing cost - Read and learn Accounting standard 16 explains deeply the definitions and accounting treatment of borrowing cost . Borrowing cost includes 1. Interest on loan taken by company 2. All financial charges for taking loan. 3. Bank charges for taken loan are also included in it. And these are the expenses for employer and will go to profit and loss account’s debit side. Cost for acquiring assets is capital cost and will be included in cost of fixed asset.

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