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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Borrowing cost after construction is over
In example 5, page 25, we capitalised 9 months out of 12 and charged 1 month as an expense. What happens to interests after the construction is completed? Are they charged as expense?
Hi,
Yes, any borrowing costs incurred after the completion of construction will be expensed through profit or loss.
Thanks
Thank you!
You’re welcome!