Which of the following statements regarding borrowing costs is correct?
A)Neither Private entity GAAP nor IFRS usually require disclosure these items.
B)They are usually amortized until the majority (51%) of the underlying products have been sold.
C)They are usually treated as product costs if they are incurred to bring inventories to a condition ready for sale.
D)All of these

Question

Quizplus · Accepted Answer

Borrowing costs are usually treated as product costs if they are incurred to bring inventories to a condition ready for sale. Private entity GAAP and IFRS both require disclosure of borrowing costs. They are not usually amortized until the majority of the underlying products have been sold.

Which of the Following Statements Regarding Borrowing Costs Is Correct