alleryStart learning →Amortisation of ancillary costs on arranging borrowings is
AA borrowing cost
BA contingent asset
CA government grant
DAn owners' equity cost
Answer & Solution
Correct answer: A. A borrowing cost
Ancillary costs of arranging a loan, once amortised, are listed as borrowing costs.
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 normallyIAS 23 requires disclosing the capitalisation rate and theGeneral loans: $2,000,000 at 6% and $3,000,000 at 8%. Weighted average rate?