How Should Borrowing Costs Relating to an Asset Being Constructed

question 59

Multiple Choice

How should borrowing costs relating to an asset being constructed over a substantial period of time be treated in the financial statements?

• A)expensed as incurred
• B)capitalised and amortised over the period of the construction of the asset
• C)accrued and amortised over the period of the loan
• D)capitalised as part of the cost of the asset

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