Which accounting treatment(s) is (are) permitted under IPSAS 5 Borrowing costs? 1) Only the Expense model (Charge all borrowing costs to expenses in the period when they are incurred) 2) Only the Capitalisation model (Capitalise borrowing costs which are directly attributable to the acquisition or construction of a qualifying asset, but only when it is probable that these costs will result in future economic benefits or service potential to the entity, and the costs can be measured reliably. All other borrowing costs that do not satisfy the conditions for capitalisation are to be expensed when incurred) 3) Both the expense model and the capitalisation model are permitted by IPSAS 5 4) None of the above are permitted by IPSAS 5 Please select the right answer. Sorry, your answer was not correct! 7/25 Question 1 2 3 4 Previous Next