Chauvin is building a plant and has incurred 1,800,000 of expenditure to date. It has received 450,000 of grant for this asset, which it deducts from the asset's carrying amount. Under the IAS 23 rule (its own course), the capitalisation base for borrowing costs is the expenditure incurred net of the grant received for the asset. Calculate the expenditure used as the base.
- Expenditure incurred on the asset under construction
- 1,800,000
- Grant received for the asset
- 450,000