IPSAS 5 governs the accounting treatment for borrowing costs. In general, it requires borrowing costs to be expensed immediately, but does permit, as an allowed alternative treatment, the capitalization of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset.
IAS 23, Borrowing Costs
Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds. Borrowing costs may include