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If a loan is drawn on 1 january 20×9 and some of the loan is not utilised until 1 july 20×9 and is invested then that amount of the loan not utilised and invested would not be capitalised until it is withdrawn from being invested and being utilised
Correct. 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.
Thanks.