IMPORTANCE OF BORROWING COST FROM VALUATION, TAXATION, ACCOUNTING, AND AUDIT PERSPECTIVE.
01. Valuation of Borrowing Costs
The valuation of borrowing costs considers the risk and the maximum rate of return.
02. Borrowing Costs in Taxation
There are borrowing costs in taxation that can be classied as deductible expenses and non-deductible expenses.
03. Borrowing Costs in Accounting
The accounting treatment for borrowing costs are allowed to be recorded as interest expenses or assets.
04. Audit Procedures of Borrowing
Auditor independence aims to increase public confidence in financial reporting about borrowing cost by some strategic audit procedures.