General Borrowings

1. Average Carrying Amount of the Asset (Average Expenditure) during the period multiplied by average capitalization rate.
Investment Income will not be deducted.
2. The amount computed in no. 1 above should not exceed the actual interest incurred.
Average Carrying Amount = Previous period actual cost plus interest capitalized plus Average Expenditure this period.
Average Capitalization Rate = Annual borrowing cost / Total General Borrowings