IAS 23e

PRIOR YEAR BORROWINGS

Allocation of borrowing costs between wings
Prior Year
Borrowing Costs
Borrowings capitalized Total Wing A Wing B
Registration fees 5,000 244 5,244
Architect fees 10,000 375 10,375
First progress payment 60,000 2,250 62,250
75,000 2,869 77,869 - -

Borrowing costs to be capitalized

Borrowing % Interest per annum Months Amount to be capitalized
Wing A 0 9 11 Dropdown 1
Wing B 0 9 1 Dropdown 2
{a}

CURRENT YEAR BORROWINGS

A)SPECIFIC LOAN

Surplus funds available for investment

Beginning of period 510,000 {b}
End of period 10,000 {c}
Average available for investment 260,000

Borrowing costs to be capitalized

Borrowing cost on loan {a}
Interest earned on surplus funds {a}
Borrowing costs to be capitalized 0 Dropdown 3

B)GENERAL BORROWINGS

Calculation of weighted average rate

Borrowing
outstanding
Borrowing % Interest per annum (Months) Interest Weighted borrowing Weighted average rate
Bond 1,000,000 12% 11
General loan 500,000 10% 12
0 0.00

Borrowing costs to be capitalized

Expenses Average expenses
incurred incurred Weighted rate Months Amount to be capitalized
Wing A 500,000 0.00% 11 - Dropdown 4
Wing B 150,000 0.00% 1 - Dropdown 5
{a}
LEGEND

The periods of capitalization for the year ended 30 April 2018 were already identified as part of the task called "Starting and
{a} stopping" -

{b} The amount borrowed on 1 May 2017

{c} Calculated as 510,000 (amount borrowed as specific loan) less 500,000 (expenses incurred out of the specific loan)

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