What is the manner of recording the borrowing costs.

Borrowing costs directly attributable to acquisition, construction, production of tangible and intangible assets are required to be  capitalized as part of that asset cost. With respect to inventory, the borrowing costs should be added to inventory cost, only if such inventory takes twelve months or more for being brought to saleable condition. In respect of funds borrowed specifically for a qualifying asset, the actual borrowing costs during the period are required to be capitalized to that asset. In respect of general borrowings, a specific formula for capitalizing borrowing costs is provided based on the ratio of qualifying assets to total assets.