alleryStart learning →Which borrowing costs does Ind AS 23 capitalise?
AInterest on overdrafts only
BAll interest of the year
CInterest on bank loans only
DThose tied to a qualifying asset
Answer & Solution
Correct answer: D. Those tied to a qualifying asset
Only costs directly attributable to acquiring, constructing or producing a qualifying asset form part of that asset's cost; others are expensed.
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