The interest cost incurred during the construction period

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Reference no: EM131217800

An Asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred during the construction period as a result of expenditures for the asset is:

a) a part of historical cost of acquiring the asset to be written off over the estimated useful life of the asset

b) interest expense in construction period

c) recorded as a deffered charge and amortized over the term of borrowing.

d) a part of the historical cost of acquiring the asset to be written off over the term of the borrowing used to finance the consturction of the asset.

Reference no: EM131217800

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