On 1 January 2X20, Fruce Limited commenced the construction of a new head office building. The construction was completed on schedule on 30 September 2X20. Borrowing costs of 100,000, directly related to the construction, were correctly capitalised in accordance with IAS 23 Borrowing Costs.

Required:Explain how the financial statements of Fruce Limited could differ if prepared in accordance with the rules of FRS 102. Indicate the relevant journal entries to reflect these changes.(10 marks)