When do we net off from investment income finance costs in profit and loss statement IAS 23
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Netting Off Investment income
It will be the other way round - we will net the investment income off against the finance costs
When? When we have borrowing costs on a loan for a qualifying asset and we have investment income from the temporary investment of surplus funds.
Have I understood your question correctly?
I don't get when we do it and do we do it in statement of profit and loss or balance sheet
We do it in an IAS 23 situation as I have just explained.
The net figure for net borrowing costs is added to the cost of construction ie it's capitalised
And that newly increased cost of construction appears on the statement of financial position
So, to answer your question, we do it neither in the statement of profit or loss nor in the balance sheet. We do it in the statement of financial position!
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