IAS 23Chapter 6Lesson 1
General borrowings: capitalisation rate and cap
Step 1 of 9Learning objectives
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When the asset is financed by the entity's general borrowings: the capitalisation rate, weighted expenditure and the cap at costs incurred.
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Learning objectives
- Calculate a capitalisation rate from general borrowings.
- Apply this rate to the weighted expenditure on the asset.
- Apply the cap at borrowing costs incurred.