ICDS 9 vs. AS 16

The corresponding AS to ICDS - 9 'Borrowing Cost' is AS - 16 'Borrowing Cost'

Point of Difference

Basis	AS - 16	ICDS - 9
Exchange Difference	Borrowing cost includes exchange differences arising from foreign currency borrowings to the extent they are an adjustment to interest cost.	Does not include exchange differences.
Qualifying Asset	Asset that takes substantial period of time to get ready for its intended use.	It means: Tangible Assets - land, plant, etc. Intangible Assets - patents, licenses, etc. Inventories - that require 12 months or more to bring them in saleable condition.
Method of Capitalisation: Specific Borrowing	Actual borrowing costs incurred on the borrowing during the period less any income from temporary investment of those borrowings.	Actual borrowing costs incurred during the period on the funds borrowed.
Commencement of Capitalisation	The date of fulfilment of three conditions viz. incurrence of capex, incurrence of borrowing costs and preparatory activities are in progress.	Specific borrowings - date on which funds were borrowed.
Suspension of Capitalisation	During extended periods in which active development of the asset is interrupted.	No such provision.
Cessation of Capitalisation	When substantially all activities necessary to prepare the qualifying asset for its intended use or sale are complete.	Qualifying Asset - when such asset is first put to use. Inventory - when substantially all activities necessary to prepare it for its intended use is complete.