AASB 123 Borrowing Costs defines a qualifying asset as an asset that:

Question

Quizplus · Accepted Answer

AASB 123 defines a qualifying asset as an asset that takes a substantial period of time to get ready for its intended use or sale, without specifying any specific time frame. Therefore, option B is the best choice. Option A is not appropriate as time frame of greater than 12 months is not mentioned. Option C is incorrect as it refers to completion rather than preparation, and option D is vague and subjective, not clearly defining a qualifying asset.

AASB 123 Borrowing Costs Defines a Qualifying Asset as an Asset