Start learning →

For specific borrowings, eligible cost is actual cost less

AIncome on temporary investment
BDividend paid in the period
CExchange gain on principal
DDepreciation of the asset
Answer & Solution
Correct answer: A. Income on temporary investment
Income earned by temporarily investing unspent specific loan funds is deducted from the eligible cost.
Practise this question with Quill — CA Inter →

Keep practising AS 16 Borrowing Costs

Browse all AS 16 Borrowing Costs questions for CA Inter, or explore more Accounting topics.

Start a AS 16 Borrowing Costs lesson →
Related questions