Accounting Standard 16
302
Accounting Standard (AS) 16
(issued 2000)
Borrowing Costs Contents
OBJECTIVE SCOPE DEFINITIONS RECOGNITION Borrowing Costs Eligible for Capitalisation Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount Commencement of Capitalisation Suspension of Capitalisation Cessation of Capitalisation DISCLOSURE Paragraphs 1-2 3-5 6-22 8-12 13 14-16 17-18 19-22 23
The following Accounting Standards Interpretations (ASIs) relate to AS 16:
ASI 1- Substantial Period of Time ASI 10- Interpretation of paragraph 4(e) of AS 16
The above Interpretations are published elsewhere in this Compendium.
Borrowing Costs
303
Accounting Standard (AS) 16
(issued 2000)
Borrowing Costs
(This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) The following is the text of Accounting Standard (AS) 16, ‘Borrowing Costs’, issued by the Council of the Institute of Chartered Accountants of India. This Standard comes into effect in respect of accounting periods commencing on or after 1-4-2000 and is mandatory in nature.2 Paragraph 9.2 and paragraph 20 (except the first sentence) of Accounting Standard (AS) 10, ‘Accounting for Fixed Assets’, stand withdrawn from this date.
Objective
The objective of this Statement is to prescribe the accounting treatment for borrowing costs.
Scope
1. This Statement should be applied in accounting for borrowing costs. 2. This Statement does not deal with the actual or imputed cost of owners’ equity, including preference share capital not classified as a liability.
Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material.
1
Reference may be made
Accounting Standard (AS) 16
(issued 2000)
Borrowing Costs Contents
OBJECTIVE SCOPE DEFINITIONS RECOGNITION Borrowing Costs Eligible for Capitalisation Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount Commencement of Capitalisation Suspension of Capitalisation Cessation of Capitalisation DISCLOSURE Paragraphs 1-2 3-5 6-22 8-12 13 14-16 17-18 19-22 23
The following Accounting Standards Interpretations (ASIs) relate to AS 16:
ASI 1- Substantial Period of Time ASI 10- Interpretation of paragraph 4(e) of AS 16
The above Interpretations are published elsewhere in this Compendium.
Borrowing Costs
303
Accounting Standard (AS) 16
(issued 2000)
Borrowing Costs
(This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) The following is the text of Accounting Standard (AS) 16, ‘Borrowing Costs’, issued by the Council of the Institute of Chartered Accountants of India. This Standard comes into effect in respect of accounting periods commencing on or after 1-4-2000 and is mandatory in nature.2 Paragraph 9.2 and paragraph 20 (except the first sentence) of Accounting Standard (AS) 10, ‘Accounting for Fixed Assets’, stand withdrawn from this date.
Objective
The objective of this Statement is to prescribe the accounting treatment for borrowing costs.
Scope
1. This Statement should be applied in accounting for borrowing costs. 2. This Statement does not deal with the actual or imputed cost of owners’ equity, including preference share capital not classified as a liability.
Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material.
1
Reference may be made