CAF-1 · Chapter 2 · Question 5 of 15
Which of the following costs is NOT considered a borrowing cost under IAS 23?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Dividends paid to equity holders.
Explanation
Dividends paid to equity holders are distributions of profit, not borrowing costs under IAS 23.
More IAS 23 Borrowing Costs MCQs
- Q7When does the capitalization of borrowing costs commence?
- Q8During a major construction project, work is suspended for four months due to a prolonged labor strike. What should happen to the…
- Q9If a temporary delay is a necessary part of getting an asset ready (e.g., waiting for high water levels to recede during bridge…
- Q10When are borrowing costs generally considered to cease being capitalized?
- Q11Omega Corp invests unused specific borrowed funds and earns Rs. 2 million in interest. How is this income treated under IAS 23?