March/June 17 – Q1b Capitalisation of finance charges

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Kim Smith.

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August 27, 2018 at 11:41 am #469632
samymary
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Hi Sir,

Wouldn’t finance charges on the additional loan of $20m be added to the capital if it is for the development costs and not for the research cost?
August 28, 2018 at 8:43 am #469768
Kim Smith
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I don’t see why not – the answer is just focusing on the risk of understating the loan if the finance cost is not accrued.
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