Borrowing cost

Borrowing cost

Rogers User Posts: 1 Joined: 14/10/2011	#1 14/10/2011 06:52 how borrowing cost can be recognized in financial statements.

carter User Posts: 1 Joined: 14/10/2011	#2 14/10/2011 07:53 An entity shall capitalise borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. An entity shall recognise other borrowing costs as an expense in the period in which it incurs them.

lucky1 Guest	#3 03/12/2011 19:35 why 2 different treatments are allowed. why not to expense out all borrowing cost?

barbarian Guest	#4 07/12/2011 05:23 actually borrowing cost is allowed to capitalize for those items which can be completed for more then 1 year. it will not be fair if it is not allowed and company has to expense out the borrowing cost while borrowing was made only for the construction of that item.

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