Question

How should finance costs be disclosed in the statement of profit and loss?

a.

Only as interest expense.

b.

Only as other borrowing costs.

c.

Separately as interest expense, other borrowing costs, and applicable net gain/loss on foreign currency transaction and translation.

d.

Only as applicable net gain/loss on foreign currency transaction and translation.

Answer: (c).Separately as interest expense, other borrowing costs, and applicable net gain/loss on foreign currency transaction and translation. Explanation:Finance costs should be disclosed in the statement of profit and loss separately as interest expense, other borrowing costs, and applicable net gain/loss on foreign currency transaction and translation.

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Q. How should finance costs be disclosed in the statement of profit and loss?

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