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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- 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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The following interpretations refer to IAS 23
This page was last updated 4 February 2022.