Explanation of the proposed IAS 23 revisions
08 Jun 2006
On 25 May 2006, the International Accounting Standards Board (IASB) issued an Exposure Draft (ED) to amend IAS 23 Borrowing Costs.
Deloitte has published a (PDF 57k) explaining the proposed changes to IAS 23. The most fundamental change would be to eliminate the option in IAS 23 of recognising all borrowing costs immediately as an expense. To the extent that borrowing costs relate to the acquisition, construction or production of a qualifying asset measured on a cost basis, the revised standard would require that they be capitalised as part of the cost of that asset. All other borrowing costs would be expensed as incurred. This and nearly 90 past newsletters are always available Here.