Interest and financing charges in cost statements must be measured, assigned, presented, and disclosed with uniform accounting treatment.

Cost Accounting Standard CAS-17 governs the classification, measurement, assignment, presentation and disclosure of interest and financing charges in cost statements. It requires such charges to be measured under the applicable accounting standards, identified for qualifying assets and other finance costs, and assigned to cost objects on the basis of cause and effect or benefits received. Directly attributable borrowing costs form part of qualifying asset cost, while imputed costs, penal levies, and investment interest are excluded. Interest and financing charges are shown separately in cost statements and disclosed where material.

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