CERTYNEX IFRS ACADEMY

Four colleagues comment on the cap applicable to capitalised borrowing costs. Which of the following statements is incorrect?

"The amount capitalised does not exceed the borrowing costs incurred in the period."

"If the amount calculated is lower than the costs incurred, the amount capitalised is the amount calculated."

"The cap is checked period by period, comparing the amount calculated with the costs incurred in that period."

"If the amount calculated exceeds the costs incurred, the calculated amount is capitalised, the excess being a real cost."