• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Borrowing cost capitalisation

Forums › Ask CIMA Tutor Forums › Ask CIMA F1 Tutor Forums › Borrowing cost capitalisation

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 22, 2016 at 11:07 am #350603
    mamolokom
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Hello Chris,

    with regards to capitalisation of borrowing cost, on the notes as well as my study text, it states that capitalization must stop when the asset is ready for use. what happens if the asset is being used while it is still in construction or being assembled , how do you account the borrowing cost. do I pro-rata them or capitalise in full?

    November 22, 2016 at 9:19 pm #350777
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    Hi,

    We stop capitalising at the earliest opportunity, so once it is being used then the capitalisation stops.

    From a real life perspective it would be very rare that an asset would be being used anyway if it was still being constructed.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • hhys on PM Chapter 4 Questions Environmental Management Accounting
  • singhjyoti on Conceptual Framework – ACCA SBR lecture
  • John Moffat on Time Series Analysis – ACCA Management Accounting (MA)
  • azubair on Time Series Analysis – ACCA Management Accounting (MA)
  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in