Question

A company begins construction of a qualifying asset funded partly from general borrowings. Work was suspended for 5 months due to a strike. Should borrowing cost capitalisation continue during suspension?

A Yes, borrowing costs are always capitalised.
B No, suspend capitalisation during prolonged suspension.
C Capitalise half of costs during suspension.
D Expense all borrowing costs, regardless of suspension.
E Capitalise if management intends to complete later.
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