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

Question

Quizplus · Accepted Answer

Borrowing costs are only capitalized and included in the carrying amount of a qualifying asset if they are directly attributable to the acquisition, construction, or production of that asset. If they are not directly attributable, they are expensed in the period incurred and do not appear in the statement of comprehensive income.

When Might Borrowing Costs Not Appear in a Statement of Comprehensive