On 1 January 2017, X began to construct a supermarket. It purchased a leasehold interest in the
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On 1 January 2017, X began to construct a supermarket. It purchased a leasehold interest in the site for €25 million. The construction of the building cost €9 million and the fixtures and fittings cost €6 million. The construction of the supermarket was completed on 30 September 2017 and it was available for use from 1 January 2018.
X borrowed €40 million on 1 January 2017 in order to finance this project. The loan carried interest at 10% per annum. It was repaid on 30 June 2018.
Requirement Calculate the total amount to be included in property, plant and equipment in respect of the development at 31 December 2017.
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Related Book For
International Financial Accounting And Reporting
ISBN: 9781912350025
6th Edition
Authors: Ciaran Connolly
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