Interest and financing charges

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..... s of determining and assigning the Interest and Financing Charges with reasonable accuracy. 3. Scope This standard should be applied to cost statements which require classification, measurement, assignment, presentation and disclosure of Interest and Financing Charges including those requiring attestation. This standard does not deal with costs relating to risk management through derivatives. 4. Definitions The following terms are being used in this standard with the meaning specified. 4.1 Asset: The terms Asset, Fixed Asset, Tangible Fixed Asset, Intangible Fixed Asset, Qualifying asset, current asset will have the same meaning as in the Accounting Standards notified by the Central Government under the Companies (Acco .....

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..... e within one year from the date of disbursal as per Loan Agreement. Long-term borrowing is the borrowing which is repayable after one year from the date of disbursal as per Loan Agreement. 5. Principles of Measurement: 5.1 Interest and Financing Charges incurred shall be identified for : (a) acquisition/construction/production of qualifying assets including fixed assets; and (b) Other finance costs for production of goods/operations or services rendered which cannot be classified as qualifying assets. 5.2 Interest and Financing Charges directly attributable to the acquisition /construction/ production of a qualifying asset shall be included in the cost of the asset. 5.3 Interest and Financing Charges shall not include .....

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..... applied in Interest and Financing Charges, the rate and usage variances. 3. Interest and Financing Charges paid/ payable to related parties. 4. Interest and Financing Charges incurred in foreign exchange. 5. Any Subsidy/Grant/Incentive or any amount of similar nature received/receivable reduced Interest and Financing Charges. 8.2 Disclosures shall be made only where material, significant and quantifiable. 8.3 Interest and Financing Charges incurred relating to prior periods and taken to reconciliation directly shall be disclosed separately. 8.4 Disclosures shall be made in the body of the Cost Statement or as a foot note or as a separate schedule. 8.5 Any change in the cost accounting principles and methods applied for .....

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