IAS 23

This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.

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March 13, 2017 at 12:24 pm #378026
hemraj123
Member
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Sir, supposing if an 8% loan of 10m was taken out on 1 Jan, the construction of the qualifying asset started on 1 Mar and went on till 31 Dec. 2m of the unused funds were invested from 1 Jan to 1July at 5%.

So, will the deduction from borrowing costs ( 1 Mar – 31 Dec) be from 1 Jan to 1 July or 1 Mar to 1 July?

Thanks
March 19, 2017 at 8:18 am #378672
P2-D2
Keymaster
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Hi,

It would be from 1 March as it can only be offset when borrowing costs are being incurred.

Thanks
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