When Might Borrowing Costs Not Appear in a Statement of Comprehensive

question 47

Multiple Choice

When might borrowing costs not appear in a statement of comprehensive income?

• A) If they relate to research expenditure.
• B) If they result from a negatively geared project.
• C) If they are less than five percent of total expenses.
• D) If borrowing costs are directly attributable to the acquisition, construction or production of a qualifying asset.

---

Definitions:

Federal Funds Rate

The Federal Funds Rate is the interest rate at which depository institutions lend reserves maintained at the Federal Reserve to other depository institutions overnight.

Bankers' Acceptances

Short-term credit investments created by a non-financial firm and guaranteed by a bank.

Money Market Funds

Investment funds that invest in short-term debt securities with the aim of offering high liquidity with a low level of risk.

Institutional Funds

Investment pools that target large-scale investments, managed by professionals and accessible mainly to institutional investors.