IAS 23 Borrowing Costs
IAS 23 Borrowing Costs requires borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying assets form part of the cost of that asset. Other borrowing costs are recognised as an expense.
Revised March 2007. Effective 1 January 2009.
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Synopsis
- Borrowing costs are those interest costs (including related exchange differences) that are directly attributable to the acquisition, construction or production of a qualifying asset.
- A qualifying asset is an asset that takes a substantial period of time to get ready for its intended use.
- Borrowing costs, in relation to qualifying assets are capitalised where they arise during the period that the asset is being prepared for use or sale.
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Recent amendments
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The following interpretations refer to IAS 23
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IFRIC 1 Existing Decommissioning, Restoration and Similar Liabilities
Addresses accounting for a change in a provision that is included in the carrying amount of an item of PPE.
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IFRIC 12 Service Concession Arrangements
Accounting guidance for arrangements where a contract is granted for the supply of public services such as roads.
Other resources
Factsheets:
- 2019 IFRS Accounts - provides more information on amendment 2
This page was last updated 4 February 2022.