1. Which is correct concerning capitalization of borrowing cost? If the borrowing is directly attributable to a qualifying asset, the borrowing cost is required to be capitalized as cost of the asset. If the borrowing is not attributable to a qualifying asset, the borrowing cost is required to be expensed as incurred. I. II.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter11: Investor Losses
Section: Chapter Questions
Problem 26DQ
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1.
a.
3. Fair value
b.
1.
I only
C.
1. Which is correct concerning capitalization of borrowing cost?
If the borrowing is directly attributable to a qualifying asset, the borrowing cost is required to be
capitalized as cost of the asset.
If the borrowing is not attributable to a qualifying asset, the borrowing cost is required to be
expensed as incurred.
ll only
Both I and II
d. Neither I and II
2. An investor shall discontinue the use of the equity method from the date?
The investor ceases to have significant influence over an associate.
The associate operates under severe long-term restrictions that significantly impair its ability to
transfer funds to the investor.
The price that would be received to sell an asset in an orderly transaction between market
participants at the measurement date.
The present value or discounted value of future net cash flows expected to be derived from an
asset.
Transcribed Image Text:1. a. 3. Fair value b. 1. I only C. 1. Which is correct concerning capitalization of borrowing cost? If the borrowing is directly attributable to a qualifying asset, the borrowing cost is required to be capitalized as cost of the asset. If the borrowing is not attributable to a qualifying asset, the borrowing cost is required to be expensed as incurred. ll only Both I and II d. Neither I and II 2. An investor shall discontinue the use of the equity method from the date? The investor ceases to have significant influence over an associate. The associate operates under severe long-term restrictions that significantly impair its ability to transfer funds to the investor. The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The present value or discounted value of future net cash flows expected to be derived from an asset.
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