ias 23

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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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