CERTYNEX IFRS ACADEMY

Nérée borrowed in a foreign currency to finance a qualifying asset. Which statement is consistent with the standard's list of borrowing costs?

Exchange differences on the foreign-currency loan are borrowing costs, whatever their nature.

An exchange difference cannot be a borrowing cost, because it is not interest.

Favourable exchange differences reduce the borrowing costs capitalised.

Exchange differences are borrowing costs to the extent that they are regarded as an adjustment to interest.