International GAAP 2021

Chapter 21Capitalisation of borrowing costs

• 1 INTRODUCTION
• 2 THE REQUIREMENTS OF IAS 23
  • 2.1 Core principle
  • 2.2 Scope
• 3 QUALIFYING ASSETS
  • 3.1 Inventories
  • 3.2 Assets measured at fair value
  • 3.3 Financial assets
  • 3.4 Over time transfer of constructed good
• 4 DEFINITION OF BORROWING COSTS
  • 4.1 The definition of borrowing costs in IAS 23
  • 4.2 Other finance costs
• 5 BORROWING COSTS ELIGIBLE FOR CAPITALISATION
  • 5.1 Directly attributable borrowing costs
  • 5.2 Specific borrowings
  • 5.3 General borrowings
    • 5.3.1 Definition of general borrowings
      • 5.3.1.A Borrowing costs on borrowings related to completed qualifying assets
      • 5.3.1.B General borrowings related to specific non-qualifying assets
    • 5.3.2 Calculation of capitalisation rate
    • 5.3.3 Accrued costs and trade payables
    • 5.3.4 Assets carried below cost in the statement of financial position
  • 5.4 Exchange differences as a borrowing cost
  • 5.5 Other finance costs as a borrowing cost
    • 5.5.1 Derivative financial instruments
    • 5.5.2 Gains and losses on derecognition of borrowings
    • 5.5.3 Gains or losses on termination of derivative financial instruments
    • 5.5.4 Dividends payable on shares classified as financial liabilities
  • 5.6 Capitalisation of borrowing costs in hyperinflationary economies
  • 5.7 Group considerations
    • 5.7.1 Borrowings in one company and development in another
    • 5.7.2 Qualifying assets held by joint arrangements
• 6 COMMENCEMENT, SUSPENSION AND CESSATION OF CAPITALISATION
  • 6.1 Commencement of capitalisation
    • 6.1.1 Expenditures on ...