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Teal Mountain Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period: a . Direct labour costs incurred up
Teal Mountain Utilities Corporation incurred the following costs in constructing a new maintenance building during the fiscal period:
a Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended, but before Teal Mountain begins operating in the building, $
b Additional direct labour costs incurred before Teal Mountain begins operating in the building, $
c Material purchased for the building, $
d Interest on the loan to finance construction until completion, $
e Allocation of variable plant overhead based on labour hours worked on the building, $
f Architectural drawings for the building, $
g Allocation of the president's salary, $
What costs should be included in the cost of the new building if Teal Mountain prepares financial statements in accordance with IFRS? With ASPE? Assume that, if there is no specific guidance from GAAP, Teal Mountain's management would consider a building ready for productive use when Teal Mountain begins operating in the building and would prefer not to capitalize interest costs directly attributable to the acquisition, construction, or development of property, plant, and equipment.
IFRS
Total cost of new building
$
ASPE
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