Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 point 11. S1: If the qualifying asset is financed by specific borrowing, the capitalizable borrowing cost is equal to the actual borrowing cost incurred

image text in transcribed

1 point 11. S1: If the qualifying asset is financed by specific borrowing, the capitalizable borrowing cost is equal to the actual borrowing cost incurred up to completion of asset minus any investment income from the temporary investment of the borrowing. S2: If the qualifying asset is financed by general borrowings, the capitalizable borrowing cost is equal to the average expenditures on the asset multiplied by the average interest rate or actual borrowing cost incurred up to completion, whichever is lower. * Only statement 1 is true Only statement 2 is true O Both statements are true O Both statements are not true 1 point 12. For investment in equity securities carried as FVOCI under PFRS 9, the difference between the carrying value of the investment and its related cumulative unrealized gain or loss- OCI is * O its unrealized gain or loss reported as a component of oci for the period its unrealized gain or loss reported under profit or loss for the period O Its amortized cost O its initial cost 13. In a period of falling prices which inventory method generally 1 point provides the lowest amount of net income? * O Moving average O Specific identification O Weighted average O FIFO 1 point 14. Investment in associate is accounted for using: * O Fair value method Amortization method O O O O O Cost method O Equity method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

3. List ways to manage relationship dynamics

Answered: 1 week ago