alleryStart learning →Which asset fails the qualifying test?
ABusiness park in progress
BPlant built over years
CBearer plant maturing
DAsset ready when bought
Answer & Solution
Correct answer: D. Asset ready when bought
An asset that is ready for its intended use or sale on acquisition needs no preparation period, so no borrowing costs can be capitalised.
Keep practising Ind AS 23 Borrowing Costs and Ind AS 40 Investment Property
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