IAS 23 – Borrowing Costs

Amortization of Accounting
Exceptions Interest cost
discounts or premiums treatment

Qualifying asset Inventories produced

Measured at In large quantities
Amortization of ancillary Exchange difference on FC
Fair value On a repetitive basis Capitalized Expensed
costs borrowings interest

Dividend on preference
Lease finance Qualifying
shares
charges assets
Classified as financial liability

Take substantial
Time to get ready

Specific
Yes No
borrowing

Cessation Commencement Suspension

Substantially all Activities necessary Extended periods

Minor Expenses are Borrowing cost
Activities To prepare asset Active development
Modifications left Being incurred Being incurred
completed In progress interrupted