A company that produce and sell fridge. Takes loan to buy raw material for fridge production.
My question is :
- Should i consider fridge as qualifying asset??
- and should i capitalize the interest cost in inventory???
Ask the Tutor ACCA SBR
IAS 23
Only if it takes substantial period of time to build - more than a year - unlikely
Whisky takes years to mature - so, for whisky, yes
Sign into reply to this topic.
