Non-Capitalisation of Borrowing Costs

Comparison between Indian GAAP and Ind-AS/ IFRS

Under Ind-AS/ IFRS, an option is provided to not capitalise borrowing costs in respect of i) qualifying assets measured at fair value (e.g. biological assets) ii) inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis (even if they are otherwise qualifying assets).

However, no such option is provided under Indian GAAP.

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