This video explains what Borrowing Cost is and the Accounting Treatment of Borrowing Cost Borrowing Cost is Interest and other cost incurred in connection with the borrowing of funds
Mr Isaac you are a born lecturer! Your lectures are rich and motivating. I can listen to you and go to an examination hall and pass. But my worry is that you have not lectured all topics in FINANCIAL REPORTING (FR). Help us with more our AFRICAN PH Professor
Thank you Mr. Isaac , I really enjoyed your tutorial. But my problems is where you arrived at GHS400,000 investment income. Per the question I red on the screen , i did not see anywhere that state that GHs 400,000 was invested out of the specific loan. Please Kindly explain the source of that Ghs 400,000 investment Incom for me . Thank you.
Thanks so much...is it Isaac.. you did a great job.. simple explanatiom for a hard concept....you are indeed a great teacher. I can't thank you enough. I would continue to share this video to students and other practitioners to get their facts straight. Good one
if a loan agreement has management fees of let say 5% of total loan that should be paid upfront... can you capitalize that fees as part of the qualifying asset?
weren't you supposed to say 400 000 x15% x 6/12 in order to get the interest coming from the specific loan for the 2nd expenditure......I only see you treating the other 400 000 taken from the general loans, what about the other 400 000 from the specific loan?
yeah. I also realized that, so the remaining 400000 after deducting the 600000 from the specific loan how do we treat that please? Anyway, the tutorial was very great. thank you
Thank you Mr. Isaac The amount invested as part of the bank loan (400,000) was not stated in the question, was it omitted? The last expenditure on the project was 31/12/2015 in the question but while solving it, you used 31/09/2015, is it an error in the question?
hi thanks for the explanation i understood everything however on the 31/3/15 it says that u spend 600000 so how come u used 1000000. can u please clarify. thank u
@Sam & Charlesnuru: I don't think Isaacs has to to check anything out. The 400,000 was clearly imbedded in the question. The commencement date of expenditure was 31 March 2015 --- 600,000. leaving the 400,000 of the 1,000,000 bank loan which was invested for 2 months as stated by the question.
@@prem2vee , Help me. how could it be assumed that the investment was only made after the 31st March spending? that 2 months investment space could have been the Ghs 1m anytime from January to the 31st march too right?