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      Question

      Under which condition can a company capitalise borrowing

      costs?
      A Borrowing cost related to general corporate borrowings only Correct Answer Incorrect Answer
      B Borrowing costs directly attributable to acquisition, construction or production of a qualifying asset are capitalised until asset ready for use Correct Answer Incorrect Answer
      C Borrowing costs are never capitalised Correct Answer Incorrect Answer
      D Borrowing costs always expensed immediately Correct Answer Incorrect Answer
      E Borrowing costs capitalised only for intangible assets Correct Answer Incorrect Answer

      Solution

      Ind AS allows capitalisation of borrowing costs related to qualifying assets.

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