If a loan is drawn on 1 january 20x9 and some of the loan is not utilised until 1 july 20x9 and is invested then that amount of the loan not utilised and invested would not be capitalised until it is withdrawn from being invested and being utilised
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loan
3y ago#1Correct. We can only capiise from 1 July and it is then when also and income received from the investment of the funds can be netted off against what is capitalised from the borrowing costs.
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