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In this newsletter, we look at the following topic:
Q&A guidance on HKAS 23R - Borrowing Costs (Part 1)
The main difference between HKAS 23 and HKAS 23R is that borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of that asset under HKAS 23R. Under the previous HKAS 23, HKFRS preparers could either elect to capitalise such borrowing costs or to treat them as an expense. HKAS 23R is effective for annual periods beginning on or after 1 January 2009. Earlier application is permitted. Capitalisation of borrowing costs is a simple concept, but questions arise when it comes to implementation. This newsletter looks at some commonly asked questions.
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Read more by downloading our HKFRS News - Sep 2008 (pdf file, 85KB) 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 | 