Reference no: EM132464098

Question 1) Which of the following does NOT apply to the capitalization of borrowing costs for purchase of assets?

a) They can have a significant impact on a company's earnings.

b) This is allowed under both ASPE and IFRS.

c) This is not allowed under IFRS.

d) They must be disclosed in the notes to the financial statements.

Question 2) Under ASPE, the costs for environmental clean-up at the end of an asset's useful

a) are always expensed as incurred.

b) are recognized only if they represent a legal obligation.

c) are capitalized once they have become apparent.

d) include only costs related to the acquisition of the asset.