IAS 23:Borrowing costs, Example 1(ACCA_F7_June 2016_Notes)

Here's part of the question: 'He borrowed $100,000,000 on 1 January 2008, and immediately invested $50,000,000. On 28 February he withdrew $30,000,000' If he borrowed $100 and spent $50, invested $50 Then he withdrew $30 How much of that $50 invested did he have after he withdrew $30 on 28 February? That explains the $20 for March Can you do the $90 from April to May? And the $30 from June to August? And $90 from September to October Let me know if you're still struggling

Thank you MikeLittle. I have understood your clarification. Moses

You're welcome

Imperia Ltd has several loans as follows: + The loan is worth $ 1,600,000 from 1/1 / N to 31/12 / N, interest rate of 7% / year. + The loan is worth $ 2,000,000 from 1/1 / N to 31/12 / N + 1, interest rate of 8% / year. + A loan of $ 2,500,000 from 1/1 / N + 2 to 31/12 / N + 2, interest rate of 10% / year. The company intends to use these loans to invest in the construction of a factory with an estimated cost of approximately $ 3,800,000, construction period of 24 months, expected to start from 1/6 / N. Due to unfavorable weather, construction work was delayed to 1/8 / N until 1/8 / N + 2, the production plant was completed and to 1/1 / N + 3 began to be commissioned. into use. The estimated residual liquidation value (after 20 years) is $ 30,000. Requirements: Please apply the relevant international financial statements standards to: a. Determining the time when borrowing costs start to capitalize, the time to stop capitalization and the value of capitalization? Implementing related entrie Lecturer, i can't do this practice.i saw your video but i can't solve, help me

Hi, So what is it specifically that you do not understand? If you let me know then I can help you but I'm not here to answer a full question for you as you will not learn from it. You need to attempt the question to the best of your ability first and then we can fix the parts that you are stuck on. Thanks