Which of the following statements are correct? I. Borrowing costs incurred in the acquisition, construction, and production of an asset form part of the cost of that asset. II. An entity is not required to apply PAS/IAS 23 to borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset measured at fair value. I only a. С. Both I and II b. II only d. Neither I nor II

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 14GI
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2.
Which of the following statements are correct?
I. Borrowing costs incurred in the acquisition, construction, and
production of an asset form part of the cost of that asset.
II. An entity is not required to apply PAS/IAS 23 to borrowing
costs directly attributable to the acquisition, construction, or
production of a qualifying asset measured at fair value.
I only
а.
с.
Both I and II
b. II only
d. Neither I nor II
Transcribed Image Text:2. Which of the following statements are correct? I. Borrowing costs incurred in the acquisition, construction, and production of an asset form part of the cost of that asset. II. An entity is not required to apply PAS/IAS 23 to borrowing costs directly attributable to the acquisition, construction, or production of a qualifying asset measured at fair value. I only а. с. Both I and II b. II only d. Neither I nor II
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