CAF-1 · Chapter 2 · Question 11 of 15
Omega Corp invests unused specific borrowed funds and earns Rs. 2 million in interest. How is this income treated under IAS 23?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Deducted from the borrowing costs eligible for capitalization.
Explanation
The amount of borrowing costs eligible for capitalization on a specific borrowing is reduced by any investment income earned on the temporary investment of those funds.
More IAS 23 Borrowing Costs MCQs
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