When Constructing an Item of Property,plant and Equipment,which of the Following

question 53

Multiple Choice

When constructing an item of property,plant and equipment,which of the following conditions must be met,for a borrowing cost to be capitalised at the commencement date?

• A) Expenditure was incurred for the asset.
• B) Expenditure was necessary to prepare the asset for use.
• C) Borrowing costs were incurred.
• D) All of the given answers are correct.

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