IAS 23 Borrowing Costs
1. Qualifying assets
An asset that necessarily takes a substantial period of time to get ready for its intended use or sale
2. Eligible for capitalization
Only borrowing costs that are directly attributable to (the acquisition, construction or production) of a qualifying asset can be capitalized as part of the cost of that asset.
3. Commencement of capitalization
Three events or transactions must be taking place for capitalization of borrowing costs to be started.
(a) Expenditure on the asset is being incurred
(b) Borrowing costs are being incurred
(c) Activities are in progress that are necessary to prepare the asset for its intended use or sale
* Expenditure must result in the payment of cash, transfer of other assets or assumption of interest-bearing liabilities. Deductions from expenditure will be made for any progress payments or grants received in connection with the asset.
* Activities necessary to prepare the asset for its intended sale or use 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 those periods.
- Suspension of capitalization of borrowing costs is not necessary for temporary delays or for periods when substantial technical or administrative work 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 activitiesfor the sale necessary to prepare the qualifying asset for its intended use or sale are complete, then capitalization of borrowing costs should cease.
- After the cessation of capitalization, borrowing costs should be debited to profit or loss
- When physical construction of the asset is completed, although minor modifications may still be outstanding → Cessation of capitalization
6. Calculation
Once the relevant borrowings are identified, which relate to a specific asset, then the amount of borrowing costs available for capitalization will be the actual borrowing costs incurred on those borrowings during the period, less any investment income on the temporary investment of those borrowings
Specific Borrowing = interest cost – temporary earned investment
General Borrowings = expenditure on the asset * capitalization rate
7. Disclosure
Amount of borrowing cost capitalized + capitalization rate

版权声明：本站内容均来自互联网，仅供演示用，请勿用于商业和其他非法用途。如果侵犯了您的权益请与我们联系QQ:729038198，我们将在24小时内删除。