Which of the following does NOT apply to the capitalization of borrowing costs for the purchase of assets?
A) They can have a significant impact on a company's earnings.
B) This is allowed under both ASPE and IFRS.
C) This is not allowed under IFRS.
D) They must be disclosed in the notes to the financial statements.

Question

Quizplus · Accepted Answer

Capitalization of borrowing costs for the purchase of assets is allowed under both ASPE and IFRS. They can have a significant impact on a company's earnings, and must be disclosed in the notes to the financial statements. Therefore, C – "This is not allowed under IFRS" is the only choice that does not apply.

Which of the Following Does NOT Apply to the Capitalization