3. IAS 23 Borrowing costs – capitalization of borrowing costs
Example 3: Zenzi Co had the following loans in place at beginning and end of 20X8
The 8.9% debenture was issued to fund the construction of a qualifying asset (a piece of mining equipment), construction of which began on 1 July 20X8.
On 1 January 20X8, Zenzi Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was: $30m on 1 January 20X8, $20m on 1 October 20X8.
Required
Calculate the borrowing costs to be capitalized for the hydro-electric plant machine.
，我們將會及時處理。