IAS 23 Borrowing Cost

Question 1

During the current year an entity had in place $1 MiO of 6 % loan finance and $2 MiO of 9% loan finance.

It constructed a new factory which cost $600,000 and this was funded out of the existing loan finance. The factory took 8 months to complete.

To the nearest thousand, what borrowing costs should be capitalised?

$_____________ ,000

Answer 1

32,000