Question consists of two statements, namely, Assertion (A) and Reason (R). Select the correct answer.
Assertion: Borrowing costs such as discount on issue of debentures are required to be written-off completely in the year in which such expenses are incurred.
Reasoning: Total borrowings are categorised into long-term borrowings, short-term borrowings and current maturities to long-term debt as per Schedule III of the Companies. Act, 2013.
Answer & explanation
Correct answer: option 4
Borrowing costs such as discount on issue of debentures could be written off over loan period.
Total borrowings are categorised into long-term borrowings, short-term borrowings and current maturities to long-term debt as per Schedule III of the Companies Act, 2013.