[Jeffrey]

G’day Mike,

I like your reply.. it’s really make me think hard. ^^
Well understood and thank you so much!

[Jeffrey]

G’day Mike,

Thanks! Is the below presentation correct?

SOFP as at 20X5
PPE 1000

SOFP as @ 20X6
PPE 1100
(plus borrowing cost $100).

Entries to capitalise borrowing cost;
Dr PPE. 100
Cr Bank. 100

[Jeffrey]

G’day Mike,

With reference to Kat’s Q1 & your A1, can I say that IAS 23 borrowing cost is only apply to own Asset under IAS 16 which take a substantial Period of time to get ready and does not apply to Acquired Asset? In another words, acquired of qualifying asset is not applicable?

Furthermore, in regards to calculation of IAS 23, should the borrow cost (i.e finance cost) calculated as initial cost of asset using PVFCF
[EIR x Cost x Months]?
OR capitalized as and when borrow cost (finance cost) is incurred during the Qualifying period?
OR both methods wrong?

Seeking your advise on the above. Thanks!

[Jeffrey]

G’day Mike,

Well understood and my understanding Is clearer after your advise.
Thank you so much.

Preferably if there’s any material/article related to this, appreciate your sharing. (in term of F7 Examination)

Once again, Thank you for your kind guidance.

[Jeffrey]

Thank you so much Mike!

May I seek you advise on how to recognize and measure for “Available-For-Sale Financial Asset” under IFRS 9 if it is examinable for F7 Dec’15 exam?

[Jeffrey]

G’day Mike,

How about IAS 39 VS IFRS 9? Is both standard still applicable in this Dec’15 Exam?

[Jeffrey]

G’day Mike,

How able IAS 39 VS IFRS 9? Is both standard still applicable in this Dec’15 Exam?

[Author]

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