Page 11 - 2018 FAC4864 Test 4 slides - Borrowing Costs & IFRS 5

BORROWING COSTS

Definitions

• According to IAS 23 any of the following, depending

on the circumstances, may be qualifying assets:

• inventories (excluding inventories that are manufactured

or produced in large quantities on a repetitive basis,

even if they take a substantial period of time to get
ready for use or sale and inventories that are

manufactured or otherwise produced over a short

period of time)

• manufacturing plants

• power generation facilities

• intangible assets

• investment properties (excluding investment properties

measured at fair value)

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