C4 IAS23 Borrowing Costs

Question 1

What should be Capitalise

Answer 1

1. Funds borrowed specifically:
   Actual borrowing costs less
   Income on temporary investment of funds
2. Borrowed generally:
   Weighted average borrowing costs *
   Weighted average expenditure

Question 2

capitalization is Suspended when

Answer 2

During extended periods when development is interrupted

Question 3

Cap is ceased when

Answer 3

Substantially all the activities necessary to prepare the asset for its intended use or sale are complete