IAS 23 Borrowing Costs replaced IAS 23 Capitalisation of Borrowing Costs (issued in March 1984). In March 2007 the Board issued a revised IAS 23 that eliminated the option of immediate recognition of borrowing costs as an expense. Other Standards have made minor consequential amendments to IAS 23.

IAS 23 provides guidance on how to measure borrowing costs, particularly when the costs of acquisition, construction or production are funded by an entity’s general borrowings.

IAS 23 outlines the accounting treatment for borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets.

May 17, 2024 · Borrowing costs in the scope of IAS 23 comprise interest and other costs incurred by an entity in relation to the borrowing of funds (IAS 23.5). IAS 23 lists examples of borrowing costs, including: Interest expense calculated using the effective interest method under IFRS 9,

International Accounting Standard 23 Borrowing Costs (IAS 23) is set out in paragraphs 1⁠–⁠30 and the Appendix. All of the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB.

Borrowing costs are finance charges that are directly attributable to the acquisition, construction or production of a qualifying asset that forms part of the cost of that asset, i.e. such costs are capitalised. All other borrowing costs are recognised as an expense.

IAS 23 International Accounting Standard 23 Borrowing Costs Core principle 1 Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognised as an expense. Scope

Jan 6, 2025 · This blog post explains the core principles of IAS 23 Borrowing Costs, detailing how to capitalize borrowing costs for qualifying assets, with an illustrative example of calculating and capitalizing interest expenses during the construction of office buildings.

Jan 1, 1995 · IAS 23 defines both borrowing costs (interests, finance lease charges, etc.) and qualifying asset (inventories except for manufactured ones, manufacturing plants, intangible assets, investment properties).

IAS 23 was reissued in March 2007 and is applicable for annual reporting periods commencing on or after 1 January 2009. IAS 23 shall be applied in accounting for borrowing costs but it does not deal with the actual or imputed cost of equity, including preferred capital not classified as a …