BICA Qualification Practice Questions - BICA Botswana Chartered Accountancy Qualification Exam

The borrowing costs are directly attributable to the acquisition, construction, or production of a qualifying asset that necessarily takes a substantial period of time to get ready for its intended use or sale Management elects to capitalize borrowing costs as an accounting policy choice applied consistently across all tangible and intangible assets The funds are borrowed under a general overdraft facility with variable interest rates regardless of asset construction duration The asset being constructed is financed exclusively through internal retained earnings without external debt