Page 4 - 2018 FAC4864 Test 4 slides - Borrowing Costs & IFRS 5
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BORROWING COSTS
Introduction – IAS 23
• In terms of IAS 23.8 an entity shall capitalise
borrowing cost that are directly attributable to the
acquisition, construction or production of a
qualifying asset as part of the cost of that asset.
• An entity shall recognise other borrowing costs as
an expense in the period in which it is incurred.
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