If borrowing costs are capitalised,capitalisation continues:

Question

Quizplus · Accepted Answer

According to accounting standards, borrowing costs can only be capitalised during the period when activities related to the acquisition, construction or production of a qualifying asset are ongoing. Once substantially all the necessary activities are complete, capitalisation of borrowing costs should cease, regardless of the life of the asset or the business. Therefore, option B is the most appropriate answer.

If Borrowing Costs Are Capitalised,capitalisation Continues