37 A company has the following loans in place throughout the year ended 31 December 2014. GHSm 10% bank loan 140 8% bank loan 200 On 1 July 2014 GHS50m was drawn down for construction of a qualifying asset which was completed during 2015. What amount should be capitalised as borrowing costs at 31 December 2014 in respect of this asset?
37 A company has the following loans in place throughout the year ended 31 December 2014. GHSm 10% bank loan 140 8% bank loan 200 On 1 July 2014 GHS50m was drawn down for construction of a qualifying asset which was completed during 2015. What amount should be capitalised as borrowing costs at 31 December 2014 in respect of this asset?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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37 A company has the following loans in place throughout the year ended 31 December 2014.
GHSm
10% bank loan 140
8% bank loan 200
On 1 July 2014 GHS50m was drawn down for construction of a qualifying asset which was completed during 2015. What amount should be capitalised as borrowing costs at 31 December 2014 in respect of
this asset?
A GHS5.6m
B GHS2.8m
C GHS4.4m
D GHS2.2m
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