When might borrowing costs not appear in a statement of comprehensive income?
A) If they relate to research expenditure.
B) If they result from a negatively geared project.
C) If they are less than five percent of total expenses.
D) If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset.

Question

Quizplus · Accepted Answer

According to IAS 23 (Borrowing Costs), borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalized as part of the cost of that asset. Therefore, they would not appear in the statement of comprehensive income but would instead be included in the carrying amount of the qualifying asset. Options A, B, and C are not relevant to the treatment of borrowing costs in the statement of comprehensive income.

When Might Borrowing Costs Not Appear in a Statement of Comprehensive