Reference no: EM132800015

Question - SpaceM incurred the following costs in constructing a new corporate building during the fiscal period:

Direct labour costs incurred up to the point when the building is in a condition necessary for use as management intended, but before SpaceM begins operating in the building, $80,000.

Additional direct labour costs incurred before SpaceM begins operating in the building, $9,000.

Material purchased for the building, $92,500.

Interest on the loan to finance construction until completion, $5,500.

Allocation of variable plant overhead based on labour hours worked on the building, $34,000.

Architectural drawings for the building, $11,000.

Allocation of the president's salary, $66,000.

Furthermore, SpaceM's management considers a building ready for productive use when SpaceM begins operating in the building and would prefer not to capitalize interest costs directly attributable to the acquisition, construction, or development of property, plant, and equipment.

Based on information above, what costs should be included in the cost of the new building if SpaceM prepares financial statements in accordance with ASPE?

Based on information above, what costs should be included in the cost of the new building if SpaceM prepares financial statements in accordance with IFRS?