ias 23

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August 14, 2017 at 6:30 am #401741
adarsh1997
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Hi Mike!

Could you explain what’s the general logic of capitalizing borrowing costs as per IAS 23?

Thanks.
August 14, 2017 at 1:17 pm #401779
MikeLittle
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Why not???!!!

They are directly attributable to the cost of financing the construction of a qualifying asset and, because they are so directly attributable, it would be conceptually unacceptable NOT to capitalise those borrowing costs

Is that enough for you?
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