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In this newsletter, we look at the following topic:
Amendments to IAS/HKAS 23 Borrowing Costs
The International Accounting Standards Board (IASB) published amendments to IAS 23 Borrowing Costs last month. This article discusses the key features of IAS 23R, its implications for financial reporting and action that management should take. HKAS 23R is expected to be published by the Hong Kong Institute of Certified Public Accountants in due course.
The current version of IAS 23 provides management with a policy choice. Management can opt to capitalise borrowing costs relating to qualifying assets or expense the borrowing costs. IAS 23R removes this option and requires management to capitalise borrowing costs attributable to qualifying assets. Qualifying assets are assets that take a substantial time to get ready for their intended use or sale. An example of this is self-constructed assets such as buildings, machinery and internally developed software (intangible assets).
Get Your Copy Here
Read more by downloading our HKFRS News - Apr 2007 (pdf file, 101KB) for your reference.
Note: HKFRS has converged with IFRS effective from 1 January 2005. Contents contained in this newsletter are relevant to both HKFRS preparers and IFRS preparers. Other Issues of HKFRS News
Accounting and Listing Rules Updates. |
