An entity shall suspend capitalization of borrowing costs during extended periods in which it suspends active development of a qualifying asset. 9. Statement 1: When an entity completes the construction of a qualifying asset in parts and each part is not capable of being used while construction continues on other parts, the entity shall cease capitalizing borrowing costs when it completes partly the activities. Statement 2:. a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct.

An entity shall suspend capitalization of borrowing costs during extended periods in which it suspends active development of a qualifying asset. 9. Statement 1: When an entity completes the construction of a qualifying asset in parts and each part is not capable of being used while construction continues on other parts, the entity shall cease capitalizing borrowing costs when it completes partly the activities. Statement 2:. a. Only the first statement is correct. b. Only the second statement is correct. с. Both statements are correct. d. Neither of the statements is correct.

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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