IAS 23 Borrowing costs

Core principle

1 Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset. Other borrowing costs are recognised as an expense.

Scope

2 An entity shall apply this Standard in accounting for borrowing costs.

3 The Standard does not deal with the actual or imputed cost of equity, including preferred capital not classified as a liability.

4 An entity is not required to apply the Standard to borrowing costs directly attributable to the acquisition, construction or production of:

  1. a qualifying asset measured at fair value, for example a biological asset within the scope of IAS 41 Agriculture; or
  2. inventories that are manufactured, or
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