When capitalisation of borrowing cost should cease as per Accounting Standard 16? Explain in brief. In the following list of shares issued, for the…

Capitalization of borrowing costs should cease when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete. An asset is normally ready for its intended use or sale when its physical construction or production is complete even though routine administrative work might still continue. If minor modifications such as the decoration of a property to the user's specification, are all that are outstanding, this indicates that substantially all the activities are complete. When the construction of a qualifying asset is completed in parts and a completed part is capable of being used while construction continues for the other parts, capitalization of borrowing costs in relation to a part should cease when substantially all the activities necessary to prepare that part for its intended use or sale are complete. The following dates should be considered for consideration of weights for the purpose of calculation of weighted average number of shares in the given situations: Date of Cash receivableDate of conversionDate on which settlement becomes effectiveWhen the services are renderedDate when interest ceases to accrueDate on which the acquisition is recognised.