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If any plant has been bought for construction contract (IAS 11) by borrowing money from the bank, What would be the treatment of the borrowing cost?
Is it according to IAS 23?
i.e. capitalised with the plant?Or under IAS 11… as in COST of construction
Please describe the treatment in detail (including the journals )
Thank you 🙂
Capitalized as part of construction costs would be my guess and you shouldn’t therefore need me to spell out the journal entries (Debit costs to date, Credit bank account / cash
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