IAS 23 Flashcards
What are borrowing costs?
Directly attributable to acquisition, construction or production of a qualifying asset form part of cost of the asset
What happens with other borrowing costs?
Recognised as an expense
What do borrowing costs represent?
Interest and other costs that an entity incurs in connection with borrowing of funds
How are proceeds of the loan recognised?
Through investment income
What is a qualifying asset?
One that takes a long period of time to be ready for its intended use or sale
When does capitalisation commence?
Expenditure incurred
Borrowing costs incurred
Activities ready for use/sale are in progress
WHen is capitalisation suspended?
Development interrupted
When is capitalisation ceased?
When activities to get asset ready for use/sale are complete
Funds specifically borrowed
At actual borrowing rate less income
General funds
Weighted average of borrowing costs in period
What should amount capitalised not exceed?
Actual cost
Funds specifically borrowed calculation?
At actual borrowing rate less any income
General funds calculation?
Weighted average of borrowing costs in period
