• 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 September 2025 exams.
Get your discount code >>

Borrowing costs

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Borrowing costs

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by Anuja Nair.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • May 23, 2016 at 3:04 am #316502
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    How do i do the following question below. The only thing i know is that we can capitalize cost from 1 may till 30 november only because capitalization have to stop when construction ends. I already have the SOPL and SOFP answers. But i want to know the workings to derive those figures.Can you help me ?

    Qn)Bleaky decided to build a new head office at the start of the year. The total cost of the project was $20 million, and to fund this Bleaky received a $20 million 6% loan on 1 April 20X3. As well as the interest payments, it agreed to repay the loan by making five annual payments of $4 million on 31 March each year. It paid the interest of $1,200,000 and the first $4 million repayment on 31 March 20X4.

    Construction work on the office began on 1 May, and was completed on 30 November. Bleaky decided to wait until the new year to move premises so began to use the building in January 20X4. It expects to use the building for the next 25 years. As not all the funds were required immediately, it invested $6 million of the loan in 5% bonds from 1 May until 1 August.

    Required: Prepare extracts of Bleaky’s statement of profit or loss and statement of financial position in respect of the building for the year ended 31 March 20X4. Note: All calculations should be made to the nearest thousand.

  • Author
    Posts
Viewing 1 post (of 1 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

  • adityachaudhry on Discounted cash flow techniques (part 3) – ACCA (AFM) lectures
  • nuripamir on ACCA Administrative Review
  • Jherddie on CIMA E3 Chapter 8 Test
  • umangkumbhat on What is Assurance? – ACCA Audit and Assurance (AA)
  • ahmadhoney on How to register with ACCA?

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