Abstract :
Borrowing costs that enterprise to borrow funds due to the price paid by its borrowers, including interest, the amortization of premium or discount, as well as support costs for borrowing in foreign currency exchange differences. There are two ways of accounting for borrowing cost to deal with, one is capitalization, including costs related assets; another method is the cost is directly included in current profit and loss. Therefore, this article discussed form these two aspects in practice, the capitalization of borrowing costs or expenses, as well as the corresponding number of capital costs and on how much of it is very important, if the accounting treatment was inappropriate, and will lead directly to an enterprise´s financial situation reflected untrue.
