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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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