CERTYNEX IFRS ACADEMY

Nérée's closing file puts forward four justifications for including interest in the cost of a plant under construction. Which one is incorrect?

Interest on the loan taken out to finance the plant works, because it would not have been incurred without those works.

Interest on the part of the loan used to pay the plant's contractors, because it would have been avoided without that expenditure.

Interest on the loan that financed the advance payments to the plant's builder, because without those payments the loan would not have been needed.

Interest on a borrowing unrelated to the plant, because it was incurred during the construction period.