New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 20 Borrowing costs

1 Introduction

2 comparison between section 25, previous UK GAAP and IFRS

   2.1 Key differences between Section 25 and previous UK GAAP

       2.1.1 Qualifying assets

       2.1.2 Unit of account

       2.1.3 Investment income on unspent funds

       2.1.4 Disclosure differences

   2.2 Key differences between Section 25 and IFRS

       2.2.1 Capitalisation of borrowing costs

       2.2.2 General borrowings

       2.2.3 Expenditure on qualifying assets

       2.2.4 Disclosure differences

3 The requirements of Section 25 for borrowing costs

   3.1 Terms used in Section 25

   3.2 Accounting for borrowing costs

   3.3 Scope of Section 25

   3.4 Definition of a qualifying asset

   3.5 Borrowing costs eligible for capitalisation

       3.5.1 Class of qualifying assets

       3.5.2 Specific borrowings

       3.5.3 General borrowings

1. 3.5.3.A Definition of general borrowings
2. 3.5.3.B Expenditure on the asset
3. 3.5.3.C Assets carried below cost in the statement of financial position
4. 3.5.3.D Calculation of capitalisation rate

       3.5.4 Exchange differences as a borrowing cost

       3.5.5 Other finance costs as a borrowing cost

1. 3.5.5.A Derivative financial instruments
2. 3.5.5.B Gains and losses on derecognition of borrowings
3. 3.5.5.C Gains or losses on termination of derivative financial instruments
4. 3.5.5.D Dividends payable on shares classified as financial liabilities

       3.5.6 Capitalisation of borrowing costs in hyperinflationary economies

       3.5.7 ...