Borrowing costs Flashcards
1
Q
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When are borrowing costs capitalised?
A
On qualifying assets;
that take a substantial amount of time to get ready for use
2
Q
When do you commence capitlaising borrowing costs on qualifying assets?
A
When you incur the expenses, incur the borrowing costs and have undertaken activities
Capitalisation ccurs during the exact period of construction. Then depreciate from avaliable to use date
If there is any suspension in construction due to strikes etc, the capitlaisation of borrowing costs is halted during this time
