BORROWING COSTS

Borrowing costs that are directly attributable to the

Full PFRS acquisition, construction or production of a qualifying asset
shall be capitalized as part of the cost of the asset.

Borrowing costs that are not directly attributable to a

qualifying asset shall be expensed when incurred.

PFRS for SMEs An SME shall recognize all borrowing costs as expense of the
period when incurred.

PFRS for SEs An SME shall recognize all borrowing costs as expense of the
period when incurred.

Borrowing Costs
o PAS 23, paragraph 5, borrowing costs are interest and other costs that an entity
incurs in connection with borrowing of funds.
o include interest expense calculated using the effective interest method.