Answered: 1. PAS 23 does not require which of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. PAS 23 does not require which of the following disclosures? *

A. The capitalization rate used to determine the capitalizable borrowing costs.

B. PAS 23 requires the disclosure of all these information.

C. The amount of borrowing costs capitalized during the period.

D. Separate presentation of qualifying assets from other assets either on the face of the statement of financial position or in the notes.

2. How much is the cost of the qualifying asset on initial recognition? *

A. 15,045,000

B. 13,010,000

C. 14,970,900

D. 14,920,000

3. According to PAS 23, borrowing costs are capitalized when *

A. They relate directly to the acquisition, construction, or production of a qualifying asset.

B. The entity chooses to capitalize them

C. They are material and are expected to be incurred over more than one reporting period.

D. All of the options

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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