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ias 23

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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May 17, 2017 at 6:34 pm #386704
adarsh1997
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Hi Mike!
IAS 23 says that “any investment income on the temporary investment of those borrowings should be deducted”
-Could you please explain what’s the logic or explanation of it?
Thanks.
May 17, 2017 at 8:30 pm #386733
MikeLittle
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If you’re going to capitalise interest on borrowings, surely it’s just being consistent to reduce the amount capitalise by the amount of interest earned as a result of investing the excess of those borrowings
OK?
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