Flashcards
IAS23 Borrowing costs
Cards in this deck (5)
- 1What is qualifying asset?An asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
- 2What is main rule of IAS23?Borrowing costs, net of income received from the investment of the money borrowed, on a qualifying asset
must be capitalised over the period of construction. - 3Which conditions must be met in order to recognise borrowing costs?• Expenditure on the asset commences
• borrowing costs are being incurred
• activities that are necessary to prepare the asset for its intended use or
sale are in progress. - 4When should capitalisation of borrowing be suspended?If active development is interrupted for any extended periods, capitalisation of borrowing costs should be
suspended for those periods. - 5When capitalisation should be stopped?Once substantially all the activities necessary to prepare the qualifying asset for its intended use or sale
are complete,
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- ACCA FR (F7) Flashcards on IAS23 Borrowing costs, created by Archimed Nemes on 18/01/2019.
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- Archimed Nemes
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