CAF-1 · Chapter 2 · Question 6 of 15
What is the condition for capitalizing borrowing costs regarding the probability of economic benefits?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) It is probable they will result in future economic benefits and can be measured reliably.
Explanation
Borrowing costs are capitalized when it is probable that they will result in future economic benefits and the costs can be measured reliably.
More IAS 23 Borrowing Costs MCQs
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- Q10When are borrowing costs generally considered to cease being capitalized?
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