UK GAAP 2019

Chapter 22Borrowing costs

• 1 INTRODUCTION
• 2 COMPARISON BETWEEN SECTION 25 AND IFRS
  • 2.1 Capitalisation of borrowing costs
  • 2.2 General borrowings
  • 2.3 Expenditure on qualifying assets
  • 2.4 Disclosure differences
• 3 THE REQUIREMENTS OF SECTION 25 FOR BORROWING COSTS
  • 3.1 Terms used in Section 25
  • 3.2 Scope of Section 25
  • 3.3 Accounting for borrowing costs
  • 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
      • 3.5.3.A Borrowing costs on borrowings related to completed qualifying assets
      • 3.5.3.B General borrowings related to specific non-qualifying assets
      • 3.5.3.C Expenditure on the asset
      • 3.5.3.D Assets carried below cost in the statement of financial position
      • 3.5.3.E Calculation of capitalisation rate
    • 3.5.4 Exchange differences as a borrowing cost
    • 3.5.5 Other finance costs as a borrowing cost
      • 3.5.5.A Derivative financial instruments
      • 3.5.5.B Gains and losses on derecognition of borrowings
      • 3.5.5.C Gains or losses on termination of derivative financial instruments
      • 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 Group considerations
      • 3.5.7.A Borrowings in one company and development in another
      • 3.5.7.B Qualifying assets held by joint ventures
  • 3.6 Commencement, suspension and cessation of capitalisation
    • 3.6.1 Commencement of capitalisation
    • 3.6.2 Suspension of capitalisation ...