CAF-1 · Chapter 2 · Question 14 of 15
Which of the following must an entity disclose in its financial statements regarding borrowing costs?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The amount of borrowing costs capitalized and the capitalization rate used.
Explanation
IAS 23 requires disclosure of the amount of borrowing costs capitalized during the period and the capitalization rate used.
More IAS 23 Borrowing Costs MCQs
- Q1Which of the following assets would typically be classified as a 'qualifying asset' under IAS 23, allowing for the capitalization of…
- Q2Under IAS 23, which of the following is NOT considered a borrowing cost?
- Q3Delta Inc. borrowed Rs. 40 million specifically to construct a qualifying asset. Before the funds were needed for construction, Delta…
- Q4Which of the following is typically excluded from being a 'qualifying asset' under IAS 23?
- Q5Which of the following costs is NOT considered a borrowing cost under IAS 23?