Statement 1: Entities with qualifying assets shall disclosed in the financial statements the amount of borrowing costs capitalized as well as the amount of borrowing costs charged to profit or loss for the period. Statement 2: Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Statement 1: Entities with qualifying assets shall disclosed in the financial statements the amount of borrowing costs capitalized as well as the amount of borrowing costs charged to profit or loss for the period. Statement 2: Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: Entities with qualifying assets shall disclosed in the financial statements the amount of borrowing costs capitalized as well as the amount of borrowing costs charged to profit or loss for the period.
Statement 2: Recoverable amount is determined for an individual asset, unless the asset does not generatecash inflows that are largely independent of those from other assets or groups of assets.
Statement 2: Recoverable amount is determined for an individual asset, unless the asset does not generate
Only statement 1 is correct.
Both statements are correct
Both statements are incorrect.
Only statement 2 is correct
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