TaxTMI 
TaxTMI 
Comparison of ICDS-IX, AS-16 & IndAS-23
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....ign currency borrowings to the extent that they are regarded as an adjustment to interest cost are not covered under this ICDS. Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds. Borrowing costs may include: (a) interest and commitment charges on bank borrowings and other short-term and long-term borrowings; (b) amortisation of dis....
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....ign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Period of time necessarily taken for acquisition, construction or production of asset so that asset qualifies as 'Qualified Asset' Inventories - Period of 12 months or more to bring them into saleable condition. Fixed Assets & Intangible Assets - Does not necessarily require 12 months or m....
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.... its intended use or sale. (IndAs is silent on number of months or determination of specific period to make assets as qualifying assets.) Commencement of Capitalisation The capitalisation of borrowing costs shall commence: a) in as case where funds specifically borrowed for obtaining qualifying asset, from the date on which funds were borrowed. b) in other case, from the date on which fun....
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....ation No suspension under any circumstances. Capitalization suspended during extended periods in which active development is interrupted. An entity shall suspend capitalisation of borrowing costs during extended periods in which it suspends active development of a qualifying asset. However, an entity does not normally suspend capitalising borrowing costs during a period when it carries out sub....