How should an entity account for borrowing costs incurred on funds borrowed specifically for the purpose of acquiring a qualifying asset? Question 3Answer a. Recognize all the borrowing costs in profit or loss if they are incurred during the capitalization period. b. Capitalize as part of the cost of the asset if they are incurred during the capitalization period. c. Record as a liability in the statement of financial position d. Deduct from the carrying amount of the asset