Ricardo Limited is constructing a Power Plant which was completed on 31st December 2023. The company obtained a bank loan of R1,000,000 at a rate of 15% per annum to construct the Power Plant on 1st January 2023. As of 31st December 2023, Ricardo Limited also had the following loans outstanding: I. 18% 5-year loan Note of R1,500,000 II. 14% Debentures of R1,000,000 Expenditures on the project were made as follows: 1. On the 31st March 2023, R600,000 was incurred; II. R800,000 was incurred on 30th June 2023; III. The final expenditure incurred was R300,000 on 31st December 2023. During the year Ricardo Limited invested R400,000 of the bank loan for 2 months at an interest of 9% per annum. Required: Define Borrowing costs and the accounting standard When do you capitalise costs and when are they expenses? Determine the amount of borrowing costs to be capitalized and expensed.