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Ask the Tutor ACCA FR
Borrowing cost
How much did you borrow?
What's the bank going to say when you tell them that you're not going to pay them any interest on that $1 million because, even though you've borrowed it, you don't need it just yet?
If they agree with you, can you please let me know the name of your bank!
You're welcome
In the exam question from a few years back, the examiner calculated the investment income for the period that we were capitalising the borrowing costs
OK?
We calculate the investment income earned during the exact same period during which the borrowing costs are capitalised
You're welcome
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