Which of the following is a requirement for first-time adoption under IAS 23? The entity can defer policy election up to one year after adoption. The entity must adopt a policy of capitalizing borrowing costs and apply that policy consistently in its opening balance sheet and all periods presented. When the entity establishes a deemed cost for an asset, the entity is not allowed to carry forward the borrowing costs previously recognized under previous GAAP. The entity must adopt a policy of capitalizing borrowing costs, but does not need to apply that policy consistently in its opening balance sheet and all periods presented.