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Respected tutor,
As per ias 23 borrowing costs The borrowing costs must be capitalised as part of the cost of an Asset If the asset is qualifying asset
Further the qualifying asset refers to an asset that takes a substantial period of time to get ready for its intended use or sale.Sir/ma’am what period will be regarded to as a SUBSTANTIAL PERIOD
Is it 1 year or more or there is no such specific criteria for substantial period classification.
Hi,
This is where things are judgemental as there is not set definition of a substantial period of time. In the exam it will always be assumed to be a substantial period of time in the question.
Thanks
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