alleryStart learning →Under AS 16, borrowing costs are interest and other costs incurred in connection with what?
ASale of fixed assets
BBorrowing of funds
CIssue of equity shares
DPayment of dividends
Answer & Solution
Correct answer: B. Borrowing of funds
The standard defines borrowing costs as interest and other costs an enterprise incurs when it borrows funds.
Keep practising AS 16 Borrowing Costs
Browse all AS 16 Borrowing Costs questions for CA Inter, or explore more Accounting topics.
Related questions
Inventories needing a substantial time to reach saleable condition areA plant takes eighteen months to build. Is it a qualifying asset?General borrowing cost incurred in a year is Rs 50,000, but rate times spending gives Rs 6General loans of Rs 5 lakh at 8% and Rs 5 lakh at 12%; Rs 2 lakh spent on the asset. CapitAn asset is normally ready for use when its physical construction isWhen substantial technical work continues, capitalisation is normallyAmortisation of ancillary costs on arranging borrowings isIAS 23 requires disclosing the capitalisation rate and the