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What Is the Accounting Treatment Recommended Under IFRS for Interest

Question 16

Multiple Choice

What is the accounting treatment recommended under IFRS for interest capitalization for property, plant and equipment (PPE) ?


A) Capitalize cost of debt directly attributable to construction of the PPE.
B) Capitalize cost of internal funds directly attributable to construction of the PPE.
C) Expense cost of debt directly attributable to construction of the PPE.
D) IFRS does not provide any specific guidance for interest capitalization.

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