Borrowing costs capitalisation: qualifying asset-related borrowing costs must be capitalised when conditions for capitalisation are satisfied. Borrowing costs directly attributable to acquisition, construction or production of a qualifying asset shall be capitalised as part of the asset cost when they are probable of producing future economic benefits and can be measured reliably. For specific borrowings, capitalisation equals actual borrowing costs less income on temporary investments. For general borrowings, a weighted average capitalisation rate is applied to qualifying expenditures. Capitalisation begins when expenditure, borrowing costs and preparatory activities are in progress, is suspended during extended interruptions, and ceases when substantially all preparatory activities are complete.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Borrowing costs capitalisation: qualifying asset-related borrowing costs must be capitalised when conditions for capitalisation are satisfied.
Borrowing costs directly attributable to acquisition, construction or production of a qualifying asset shall be capitalised as part of the asset cost when they are probable of producing future economic benefits and can be measured reliably. For specific borrowings, capitalisation equals actual borrowing costs less income on temporary investments. For general borrowings, a weighted average capitalisation rate is applied to qualifying expenditures. Capitalisation begins when expenditure, borrowing costs and preparatory activities are in progress, is suspended during extended interruptions, and ceases when substantially all preparatory activities are complete.
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