Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under certain circumstances?

Q: What are the factors on which the cost of a loan depends?

A: Cost of loan are the expenses brought about by the borrower for taking the advance because of the…

Q: What are the quantitative disclosures that must be done by lessee?

A:

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: what is the meaning, purpose and formula of External Financing Need?

A: Finance Finance refers to the provision of money at the time it is required. Every business needs…

Q: Title Explain how a borrowing cost could arise as part of the measurement of a provision. Illustrate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: a present obligation?

A: Given: To explain the economic resource and the present obligation as,

Q: Define  debt investment.

A: Debt Investment: Debt Investment considered as Lending money on loan to the issuing entity. The main…

Q: In general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it…

A: CAPM: The capital asset pricing model (CAPM) is a method utilized to determine a hypothetically…

Q: Differentiate between a capital investment and an expense investment

A: Investment refers to the allocation of the funds in the assets in order to get returns. The…

Q: What does financing activities includes?

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash…

Q: give the definition, recognition, measurement and derecognition of "borrowing cost"

A: A uniform group of principles, standards, and procedures that explain the basic financial accounting…

Q: What are the quantitative disclosures that must be done by lessor?

A:

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: acroprudential measures overlap?

A: Assessing their effectiveness is complicated by selection bias; countries which change their…

Q: NANGUTANG started constructing a building for its own use on January 1, 2020. NANGUTANG provided the…

A: Effective Rate of Interest= Total Amount of Interest/Total Amount of Loan 2500000/30000000=8.33%

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A:

Q: Discuss, using practical example how revenue expenditure should not be capitalized?

A: SOLUTION- Thus, a revenue expenditure which increases the utility or productive capacity of an…

Q: lending

A: The term net lending is defined as an economic measure which measures as to whether the government…

Q: Define Debt Issue Costs.

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: gs or debt) app

A: The explanation is given as,

Q: What are the financing borrowing activities?

A: The statement of cash flows is the statement which shows the change in the cash and cash equivalents…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: Borrowing cost can be capitalized as cost of the assets when

A: Borrowing costs are costs related to amount borrowed or loans taken. This is the interest expense…

Q: What key factors must be considered when determining external financing requirements?

A: External financing in the capital structuring is defined as the funds, where the firms used to…

Q: Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under…

A: The accounting treatment of borrowing costs is governed by IFRS 9 Financial Instruments, which came…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

Q: Explain, using practical example how Capital expenditure should be capitalized?

A: Capital expenditure can be defined as an expense made for the purchase of a long-term physical or…

Q: What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes…

A: Introduction: The discount rate is nothing but a rate that reduces potential cash flows in order to…