Borrowing costs incurred for the acquisition of assets may be capitalized if certain conditions are met.Which of the following issues is irrelevant in making that determination?

Question

Quizplus · Accepted Answer

The depreciation period is not relevant in determining whether borrowing costs can be capitalized. The capitalization period and whether the asset is already being used are both factors that may impact the decision, and the concept of avoidable borrowing costs is important in determining the amount that can be capitalized.

Borrowing Costs Incurred for the Acquisition of Assets May Be