IAS 23: Borrowing Cost

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

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January 31, 2018 at 9:22 pm #434310
jawad97
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Hi sir,
I have a question regarding IAS 23, if company is using specific and general term loans, then how weighted average is taken?
February 1, 2018 at 5:31 am #434348
MikeLittle
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I have never considered this situation but common sense would suggest that 100% of the borrowing cost of the specific loan should be capitalised + the weighted proportion of the borrowing costs of the general borrowings

Does that make sense to you? It does to me!
February 3, 2018 at 8:09 am #434857
MikeLittle
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2 days and no response so I’m closing the thread
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