Annual Report for 2011-2012 - Vizag Steel

30 th Annual Report 2011-12
9.2 Amortisation of "Intangible Assets" is accounted as follows:
9.2.1 Mining lease rights are amortised over the period of lease.
9.2.2 Software which is not an integral part of related hardware, is treated as intangible asset and amortised over a
period of 4 years or its licence period, whichever is less.
10.0 BORROWING COSTS
10.1 Borrowing costs incurred for obtaining assets which take more than 12 months to get ready for its intended use
are capitalised to the respective assets wherever the costs are directly attributable to such assets and in other
cases by applying weighted average cost of borrowings to the expenditure on such assets.
10.2 Other borrowing costs are treated as expense for the year.
11.0 PRIOR PERIOD ITEMS
11.1 Items of Income / Expenditure which arise in the current period as a result of errors or omissions in the preparation
of Financial Statements of one or more prior periods, exceeding 5, 00,000/- in value, in each case are treated
as prior period items.
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