10:18 .. 46 5 Ti On January 2016, Carkey Copy Bhd had managed to accumulate finances amounting to RM200 million to finance their plant in Senawang, and its general administrative operation, The following are the details on the outstanding borrowings and their corresponding costs for the year ended 31 December 2016: Amount borrowed Rate of interest RM200 50.000 10 110,000 12 40,000 200,000 Interest cost RM000 5.000 13.200 Term loan Lean stock Redeemable preference shares Total 6 2,400 During 2016, the company had utilised RM50 million of the borrowed funds to develop the plant. The construction of the plant commenced on 1 January 2016, and completed on 30 June 2017. In line with MFRS 123 Borrowing costs, all borrowing costs on qualifying assets were to be capitalised Required: (a) Define qualifying assets in accordance with MFRS 123 Borrowing Costs AND state whether the manufacturing plant of Carkey Bhd. is a qualifying asset (2 marks) (b) Compute the capitalisation rate AND the amount of borrowing costs that qualify for the capitalisation for the financial year 2016 and 2017 (5 marks) (c) Advise the management of Carkey Bhd on how to record the borrowing costs associated with the construction of the company's manufacturing plant, in accordance with MERS 123 Borrowing Costs. (3 marks) Add a caption... > Sam Stink