revision question on borrowing cost – IAS 23

IAS 23 Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a ‘qualifying asset’ (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are to be capitalized or included in the cost of the asset once they meet certain conditions.


Identify THREE conditions that must be met before an entity can commence capitalizing borrowing costs.  

5 thoughts on “revision question on borrowing cost – IAS 23”

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: