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Question · The three elements of commencement

Fontan is building a warehouse. It draws its loan on 15 March and pays the first contractor invoice on 1 April, but earthworks only begin on 20 April (the preparation activities start only on that date, case data). In three to five sentences, justify the commencement date of capitalisation of borrowing costs.

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Judgment question: compare your answer with the criteria and the model explanation.

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