When Might Borrowing Costs Not Appear in a Statement of Profit

question 13

Multiple Choice

When might borrowing costs not appear in a statement of profit or loss and other 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 are not incurred in the ordinary course of business.

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Definitions:

Speedy Resolution

The quick settlement of a dispute or legal case without prolongation.

Binding Precedent

A principle or rule established in a previous legal case that must be followed by courts in future cases with similar issues or facts.

Lengthy Process

Describes a procedure or series of actions that takes a considerable amount of time to complete, often due to complexity or detailed requirements.

More Expensive

The condition of having a higher price or cost compared to other items or services.