Question 4 (25 Marks) Jay Jay Ltd is a major manufacturing company based in Bulawayo and is expanding its warehouse operations to five provinces in Zimbabwe. The expansion starting on 1 January 2017 is expected to take 20 months and to cost $600 million to be financed 50% by new issues and 25% by a 5% specific loan and 25% by two equal general loans of 8% and 10%. Expenditure is evenly spread throughout the 20 months starting with the cheapest source of funds. You are the Project Accountant and a member of the project team. The other team members who are not accountants but are aware that IAS 23 (Capitalisation of borrowed cost) and IAS 12 (Income Tax) may apply to this expansion. Page 3 of 4 quired (a) Discuss fully to the team the major contents of IAS 23 as it relates to the project above. (18 marks) (b) IAS 12 Disclosure notes format. (You may use your own figures) (7 marks)