Question

With respect to AS: 16 (Borrowing Costs), which of the following statement is incorrect?

A A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale

B What constitutes a substantial period of time primarily depends on the facts and circumstances of each case. However, ordinarily, a period of twelve months is considered as substantial period of time unless a shorter or longer period can be justified on the basis of facts and circumstances of the case

C Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds

D This standard deal with the actual or imputed cost of owner’s equity, including preference share capital not classified as a liability

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