Borrowing Costs & Financial Instruments

If a company raises finances in the form of bonds to complete a construction contract this meets the requirements of IAS23 Borrowing costs and the associated costs can be capitalised until such time as the work is suspended or completed. If the work is completed part way through the year the recognition of capitalised costs should be to the date of completion.

Of the capitalised cost recognised does this include the effective interest less the interest paid on the bonds issued?

What happens to the costs which are not capitalised – are these just expensed if the liability is measured at FVTPL?