Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

Journal entryAdvancedPublished

Question · Directly attributable costs

Lumen borrowed 2,400,000 at 5 % a year to build a warehouse, a qualifying asset. The loan was fully spent at the start of the year on the works, and its annual interest, payable at the end of the year, is directly attributable to the warehouse. Record the entry for the interest of the year.

Construction loan
2,400,000
Annual interest rate
5 %
Your answer
  1. Line 1

    Account Asset under construction (warehouse)

  2. Line 2

    Account Interest payable

← Back to the concept