Borrowing costs IAS 23

Question 1

Borrowing costs (IFRS)

Answer 1

• Interest and other costs that an entity incurs in connection with the borrowing of funds
• Capitalize borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset
• Possible qualifying assets:
  o Inventories
  o Manufacturing plants
  o Intangible assets
  o Investment properties

Reference: IAS 23.05, .07, .08