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How should borrowing costs relating to an asset being constructed over a substantial period of time be treated in the accounts? Expensed as incurred. Capitalised

How should borrowing costs relating to an asset being constructed over a substantial period of time be treated in the accounts?

Expensed as incurred.

Capitalised and amortised over the period of the construction of the asset.

Accrued and amortised over the period of the loan.

Capitalised as part of the cost of the asset.

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