Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

March 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Need help with the illustration of net borrowing cost on pg 26 lecture notes

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Need help with the illustration of net borrowing cost on pg 26 lecture notes

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 14, 2020 at 5:06 pm #588899
    farhaanm
    Participant
    • Topics: 165
    • Replies: 73
    • ☆☆☆

    I am confused with the illustration in example 5. Why is the 0.2 million substrated from the 1.5 million. Also how was the interest income calculated?

    October 17, 2020 at 8:07 am #589433
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7136
    • ☆☆☆☆☆

    Hi,

    The net borrowing costs are capitalised. So, we have incurred 1.5 million of costs but also earned 0.2 million of income on money deposited.

    The interest income will be the $20 million invested for one month at 4%.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.