Under IFRS, interest revenue earned on specific borrowings for qualifying assets

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Under IFRS, interest revenue earned on specific borrowings for qualifying assets reduces the cost of the qualifying asset. This is because the interest expense that would have been incurred on the borrowing is capitalized as part of the cost of the asset, and the interest revenue earned offsets this cost. As a result, the net cost of the asset is reduced, which is consistent with the matching principle of accounting.

Under IFRS, Interest Revenue Earned on Specific Borrowings for Qualifying