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IAS 23

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 23

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Stephen Widberg.
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  • March 12, 2020 at 7:10 am #565143
    Saimon
    Participant
    • Topics: 123
    • Replies: 55
    • ☆☆

    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???

    March 12, 2020 at 10:32 am #565154
    Stephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3444
    • ☆☆☆☆☆

    Only if it takes substantial period of time to build – more than a year – unlikely

    Whisky takes years to mature – so, for whisky, yes

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