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According to IAS 23, an entity shall begin capitalizing borrowing costs as part of the cost of a qualifying asset on the commencement date. The commencement date for capitalization is the date when the entity first meets all of the following conditions except one: * O It incurs expenditure for the asset. O It undertakes activities that are necessary to prepare the asset for its intended use or sale. O It incurs borrowing costs directiy attributable to the construction of a qualifying asset measured at fair value. O It incurs borrowing costs.

According to IAS 23, an entity shall begin capitalizing borrowing costs as part of the cost of a qualifying asset on the commencement date. The commencement date for capitalization is the date when the entity first meets all of the following conditions except one: * O It incurs expenditure for the asset. O It undertakes activities that are necessary to prepare the asset for its intended use or sale. O It incurs borrowing costs directiy attributable to the construction of a qualifying asset measured at fair value. O It incurs borrowing costs.

FINANCIAL ACCOUNTING
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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According to IAS 23, an entity shall begin capitalizing borrowing costs as part of the cost of a qualifying asset on the commencement date. The commencement date for capitalization is the date when the entity first meets all of the following conditions except one: * O It incurs expenditure for the asset. O It undertakes activities that are necessary to prepare the asset for its intended use or sale. O It incurs borrowing costs directly attributable to the construction of a qualifying asset measured at fair value. O It incurs borrowing costs.
Transcribed Image Text:According to IAS 23, an entity shall begin capitalizing borrowing costs as part of the cost of a qualifying asset on the commencement date. The commencement date for capitalization is the date when the entity first meets all of the following conditions except one: * O It incurs expenditure for the asset. O It undertakes activities that are necessary to prepare the asset for its intended use or sale. O It incurs borrowing costs directly attributable to the construction of a qualifying asset measured at fair value. O It incurs borrowing costs.
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