alleryStart learning →Inventories needing a substantial time to reach saleable condition are
AQualifying only if imported
BCapitalised only after sale
CExcluded from AS 16 scope
DExamples of qualifying assets
Answer & Solution
Correct answer: D. Examples of qualifying assets
Stock that takes a long time to become saleable is expressly listed as a qualifying asset.
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Related questions
A plant takes eighteen months to build. Is it a qualifying asset?General borrowing cost incurred in a year is Rs 50,000, but rate times spending gives Rs 6General loans of Rs 5 lakh at 8% and Rs 5 lakh at 12%; Rs 2 lakh spent on the asset. CapitAn asset is normally ready for use when its physical construction isWhen substantial technical work continues, capitalisation is normallyAmortisation of ancillary costs on arranging borrowings isIAS 23 requires disclosing the capitalisation rate and theGeneral loans: $2,000,000 at 6% and $3,000,000 at 8%. Weighted average rate?