Exchange gains or losses on a qualifying asset that arise before it ceases to be a qualifying asset are to be deferred and amortised over the life of the asset according to AASB 123.

Question

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According to AASB 123 (Borrowing Costs), exchange gains or losses on foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs are not deferred and amortised over the life of the asset. Instead, they are typically recognized in profit or loss in the period in which they arise.

Exchange Gains or Losses on a Qualifying Asset That Arise