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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Definitions:

Ambiguity

The quality of being open to more than one interpretation, lacking clearness or definiteness; often a source of uncertainty or confusion.

Micro-Level

An approach or analysis focusing on small-scale interactions or individual elements within a larger system.

Macro-Level

Macro-level pertains to the large-scale structures and processes in society, analyzing broad social trends, institutions, and systems.

Subjectivity

The quality of being based on or influenced by personal feelings, tastes, or opinions, highlighting the individual's perspective.