To prepare its notes, Rivoire has the following data on its general borrowings: borrowing costs for the year 270,000; weighted average amount outstanding 4,500,000. The weighted average expenditure on the qualifying asset is 2,000,000 (cap not reached, case data). Calculate the capitalisation rate to disclose and the amount of borrowing costs capitalised to disclose.
- Borrowing costs of general borrowings
- 270,000
- Weighted average amount outstanding
- 4,500,000
- Weighted average expenditure on the asset
- 2,000,000