CAF-1 · Chapter 2 · Question 4 of 15
Which of the following is typically excluded from being a 'qualifying asset' under IAS 23?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Financial assets and short-term manufactured inventories.
Explanation
Financial assets and inventories manufactured over a short period are not qualifying assets.
More IAS 23 Borrowing Costs MCQs
- Q6What is the condition for capitalizing borrowing costs regarding the probability of economic benefits?
- 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?