IAS 23 Borrowing Costs
cousin1. Qualifying asts
An ast that necessarily takes a substantial period of time to get ready for its intended u or sale
2. Eligible for capitalization
Only borrowing costs that are directly attributable to (the acquisition, construction or production) of a qualifying ast can be capitalized as part of the cost of that ast.
3. Commencement of capitalization
防冻
Three events or transactions must be taking place for capitalization of borrowing costs to be started.
(a) Expenditure on the ast is being incurred
乔治华盛顿大学(b) Borrowing costs are being incurred
(c) 贱人就是矫情 英文Activities are in progress that are necessary to prepare the ast for its intended u or sale
* Expenditure must result in the payment of cash, transfer of other asts or assumption of interest-bearing liabilities. Deductions from expenditure will be made for any progress payments or grants received in connection with the ast.
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* Activities necessary to prepare the ast for its intended sale or u extend further than physical construction work.
4. Suspension of capitalization
- If active development is interrupted for any extended periods, capitalization of borrowing costs should be suspended for tho periods.
- Suspension of capitalization of borrowing costs is not necessary for temporary delays or for periods when substantial technical or administrative worknationalism is taking place.
- 非正常中断是要suspension，正常中断仍可以资本化
5. Cessation of capitalization
- Once substantially all the activities necessary to prepare the qualifying ast for its intended u or sale are complete, then capitalization of borrowing costs should cea.
- After the cessation of capitalization, borrowing costs should be debited to profit or loss
- When physical construction of the ast is completed, although minor modifications may still be outstanding → Cessation of capitalization
6. Calculation
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Once the relevant borrowings are identified, which relate to a specific ast, then the amount of borrowing costs available for capitalization will be the actual borrowing costs incurredomega 3 on tho borrowings during the period, 四级计分器less any investment income on the temporary investment of tho borrowings
Specificofficer Borrowing = interest cost – temporary earned investment
General Borrowings = expenditure on the ast * capitalization rate
7. Disclosure
Amount of borrowing cost capitalized + capitalization rate
