alleryStart learning →Exchange differences are borrowing costs how far?
AIn full, in every case
BNever, in any situation
COnly on loan repayment
DTo the extent of interest
Answer & Solution
Correct answer: D. To the extent of interest
Only the portion of exchange differences that acts as an adjustment to interest costs is treated as a borrowing cost.
Keep practising Ind AS 23 Borrowing Costs and Ind AS 40 Investment Property
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