CERTYNEX IFRS ACADEMY

Kalbris classifies interest paid as financing (case data). It paid 150,000 of expensed interest and 40,000 of interest capitalised into an asset under construction. Which presentation is most appropriate?

Disclose 150,000 of interest paid and ignore the 40,000 capitalised.

Disclose total interest paid of 190,000, documenting how capitalised interest is classified.

Present the 40,000 as operating, for lack of any other option for interest capitalised in an asset.

Offset the 40,000 against the asset acquisition.