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IPSASB proposes that public sector expense borrowing costs

  • IFAC (International Federation of Accountants) (lt gray) Image

10 Sep 2008

The International Public Sector Accounting Standards Board (IPSASB) has issued an exposure draft proposing changes to IPSAS 5 Borrowing Costs.

If adopted, the revised IPSAS 5 would require that public sector entities expense all borrowing costs with one exception. There would be an option to capitalise borrowing costs relating to funds borrowed specifically to acquire, construct, or produce a qualifying asset. The IPSASB acknowledges that this is a departure from IAS 23 (revised 2007) Borrowing Cost, which requires capitalisation of both general and specific borrowing costs relating to qualifying assets starting in 2009. Click for IPSASB Press Release (PDF 36k). Comment deadline on the proposal is 7 January 2009. The press release has a hyperlink for downloading the ED.


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