1.

A company commenced construction on a qualifying asset on 1 April 2022. Progress payments were made as follows:

1 April 2022 = R1 200 000 1 August 2022 = R400 000 The construction was financed by general borrowings. The following bank loans were outstanding for the entire 2022 year:

R15 million 10% secured loan R25 million 12% unsecured loan What is the amount of the borrowing costs that need to be capitalised on 31 December 2022 in respect of the project? 2.

An asset has a carrying amount of R280 000 and is expected to yield cash flows of R106 480 per annum for the next three years. The asset's fair value less costs of disposal is R260 000.

Assuming that all cash flows occur at the end of the year concerned and that the appropriate discount rate is 10%, what is the impairment loss?