Question
ISKOLAR started constructing a building to be used for producing its goods in January 2021. ISKOLAR incurred interest of P100,000 from its borrowings to finance
ISKOLAR started constructing a building to be used for producing its goods in January 2021. ISKOLAR incurred interest of P100,000 from its borrowings to finance the construction. In 2021, the Company also earned interest income of P20,000 and dividend income of P30,000 from its temporary placement of the proceeds from the specific borrowing.
According to PAS23, how much borrowing cost should be capitalized by ISKOLAR in 2021?
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Accounting A Smart Approach
Authors: Mary Carey, Jane Towers-Clark, Cathy Knowles
2nd Edition
0199674914, 978-0199674916
