acca国际会计准则ias23borrowingcost-ellen

中国领先 ACCA 培训中心，官方认可黄金级机构 http//Acca. Gaodun.Cn 高顿 ACCA 研究中心中国 上海 虹口区中山北一路 369 号 课程咨询上海虹口 021-6199 9158 上海徐汇 021-6167 9188 远程课程021-6052 0476 Borrowing Cost - Relevant to paper F7 Objective of IAS 23 The objective of IAS 23 is to prescribe the accounting treatment for borrowing costs. Borrowing costs include interest on bank overdrafts and borrowings, amortisation of discounts or premiums on borrowings, finance charges on finance leases and exchange differences on foreign currency borrowings where they are regarded as an adjustment to interest costs. Borrowing cost may include ◦ interest expense calculated by the effective interest under IAS 39, ◦ finance charges in respect of finance leases recognised in accordance with IAS 17 Leases, and ◦ exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs This standard does not deal with the actual or imputed cost of equity, including any preferred capital not classified as a liability pursuant to IAS32. A qualifying asset is an asset that takes a substantial period of time to get ready for its intended use or sale. That could be property, plant, and equipment and investment property during the construction period, intangible assets during the development period, or “made-to-order“ inventories. Scope of IAS 23 Two types of assets that would otherwise be qualifying assets are excluded from the scope of IAS 23 ◦ qualifying assets measured at fair value, such as biological assets accounted for under IAS 41 Agriculture ◦ inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis and that take a substantial period to get ready for sale for example, maturing whisky Accounting treatment Recognition Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset part of the cost of that asset and, therefore, should be capitalised. Other borrowing costs are recognised as an expense. 中国领先 ACCA 培训中心，官方认可黄金级机构 http//Acca. Gaodun.Cn 高顿 ACCA 研究中心中国 上海 虹口区中山北一路 369 号 课程咨询上海虹口 021-6199 9158 上海徐汇 021-6167 9188 远程课程021-6052 0476 The foregoing reflects revisions to IAS 23 adopted by the IASB in March 2007 that prohibit immediate expensing of borrowing costs. Those revisions are effective for borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after 1 January 2009. Earlier application is permitted. Until that revision was effective, an entity could apply the previous version of IAS 23, which permitted, as an accounting policy option, the immediate expensing model. Under that model, all borrowing costs should be expensed in the period in which they are incurred. Measurement Where funds are borrowed specifically, costs eligible for capitalisation are the actual costs incurred less any income earned on the temporary investment of such borrowings. Where funds are