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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 23
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???
Only if it takes substantial period of time to build – more than a year – unlikely
Whisky takes years to mature – so, for whisky, yes
