Accounting · IAS 23 Borrowing Costs
A company utilized general funds of $500,000 for a construction project starting on 1 March 20X5. The general borrowing rate is 5% per annum. Construction was actively suspended from 1 August 20X5 to 30 September 20X5, and completed on 31 December 20X5. What amount of borrowing costs should be capitalized for the year ended 31 December 20X5 under IAS 23?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$18,750
- 2$15,625
- 3$25,000
- 4$16,667✓
Correct answer
$16,667
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