Components of Borrowing Costs Eligible for Capitalisation:

1. Interest on Bank Overdrafts and Borrowings
   The interest incurred on short-term and long-term borrowings is eligible for capitalisation when directly related to the acquisition, construction, or production of a qualifying asset.
2. Amortisation of Discounts or Premiums Relating to Borrowings
   Discounts or premiums associated with borrowing arrangements are amortised over the life of the borrowing and can be included in the capitalisation of borrowing costs.
3. Amortisation of Ancillary Costs Incurred in Borrowing Arrangements
   Ancillary costs such as fees and commissions paid in connection with obtaining borrowings can be amortised and capitalised.
4. Finance Charges in Respect of Finance Leases
   Interest charges under finance lease agreements that are directly attributable to the acquisition or production of a qualifying asset can be capitalised.

Types of Borrowing Costs Eligible for Capitalisation:

1. Borrowing Costs Specifically Attributable to the Acquisition of a Qualifying Asset
   Only borrowing costs incurred directly for obtaining or producing a qualifying asset, such as the interest on loans used specifically for construction, are capitalised.
2. Borrowing Costs from General Borrowings
   If the funds are part of a general borrowing pool, the eligible amount for capitalisation is calculated by applying a capitalisation rate to the expenses incurred for the asset. The capitalisation rate is determined by the weighted average of the borrowing costs applicable to the borrowings during the period.