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1、International Accounting Standard 23 Borrowing CostsIAS 23International Accounting Standard 23Borrowing CostsThis version includes amendments resulting from IFRSs issued up to 17 January 2008.IAS 23 Borrowing Costs was issued by the International Accounting Standards Committee inDecember 1993. It re
2、placed IAS 23 Capitalisation of Borrowing Costs (issued March 1984).In April 2001 the International Accounting Standards Board resolved that all Standardsand Interpretations issued under previous Constitutions continued to be applicable unlessand until they were amended or withdrawn.IAS 23 was amend
3、ed by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors(issued December 2003).In March 2007 the IASB issued a revised IAS 23.The following Interpretations refer to IAS 23:?IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities(issued May 2004 and subsequ
4、ently amended)?IFRIC 12 Service Concession Arrangements(issued November 2006 and subsequently amended).? IASCF1369IAS 23CONTENTSparagraphsINTERNATIONAL ACCOUNTING STANDARD 23BORROWING COSTSCORE PRINCIPLE1SCOPE24DEFINITIONS57RECOGNITION825Borrowing costs eligible for capitalisation1015Excess of the c
5、arrying amount of the qualifying asset over recoverable amount16Commencement of capitalisation1719Suspension of capitalisation2021Cessation of capitalisation2225DISCLOSURE26TRANSITIONAL PROVISIONS2728EFFECTIVE DATE29WITHDRAWAL OF IAS 23 (REVISED 1993)30APPENDIXAmendments to other pronouncementsAPPRO
6、VAL OF IAS 23 BY THE BOARDBASIS FOR CONCLUSIONSDISSENTING OPINIONSAPPENDIXAmendments to Basis for Conclusions on other pronouncementsAMENDMENTS TO GUIDANCE ON OTHER PRONOUNCEMENTSTABLE OF CONCORDANCE?1370 IASCFIAS 23International Accounting Standard 23 Borrowing Costs (IAS 23) is set out inparagraph
7、s130. All of the paragraphs have equal authority but retain the IASC formatof the Standard when it was adopted by the IASB. IAS 23 should be read in the contextof its core principle and the Basis for Conclusions, the Preface to International FinancialReporting Standards and the Framework for the Pre
8、paration and Presentation of FinancialStatements. IAS8Accounting Policies, Changes in Accounting Estimates and Errors provides abasis for selecting and applying accounting policies in the absence of explicit guidance.This revised Standard was issued in March 2007. It supersedes IAS 23, revised in 19
9、93. The text of the revised Standard, marked to show changes from the previous version, is available from the IASBs Subscriber Website at .iasb.org for a limited period.? IASCF1371IAS 23International Accounting Standard 23 Borrowing CostsCore principle1Borrowing costs that are directly attributable
10、to the acquisition, construction orproduction of a qualifying asset form part of the cost of that asset.Otherborrowing costs are recognised as an expense.Scope2An entity shall apply this Standard in accounting for borrowing costs.3The Standard does not deal with the actual or imputed cost of equity,
11、 includingpreferred capital not classified as a liability.4An entity is not required to apply the Standard to borrowing costs directlyattributable to the acquisition, construction or production of: (a)a qualifying asset measured at fair value, for example a biological asset; or(b)inventories that ar
12、e manufactured, or otherwise produced, in largequantities on a repetitive basis.Definitions5This Standard uses the following terms with the meanings specified: Borrowing costs are interest and other costs that an entity incurs in connectionwith the borrowing of funds.A qualifying asset is an asset t
13、hat necessarily takes a substantial period of time toget ready for its intended use or sale. 6Borrowing costs may include:(a)interest on bank overdrafts and short-term and long-term borrowings;(b)amortisation of discounts or premiums relating to borrowings;(c)amortisation of ancillary costs incurred
14、 in connection with thearrangement of borrowings;(d)finance charges in respect of finance leases recognised in accordance withIAS 17 Leases; and(e)exchange differences arising from foreign currency borrowings to theextent that they are regarded as an adjustment to interest costs.7Depending on the ci
15、rcumstances, any of the following may be qualifying assets:(a)inventories(b)manufacturing plants?1372 IASCFIAS 23(c)power generation facilities(d)intangible assets(e)investment properties.Financial assets, and inventories that are manufactured, or otherwise produced,over a short period of time, are
16、not qualifying assets. Assets that are ready fortheir intended use or sale when acquired are not qualifying assets.Recognition8An entity shall capitalise borrowing costs that are directly attributable to theacquisition, construction or production of a qualifying asset as part of the cost ofthat asse
17、t. An entity shall recognise other borrowing costs as an expense in theperiod in which it incurs them.9Borrowing costs that are directly attributable to the acquisition, construction orproduction of a qualifying asset are included in the cost of that asset. Suchborrowing costs are capitalised as par
18、t of the cost of the asset when it is probablethat they will result in future economic benefits to the entity and the costs canbemeasured reliably. When an entity applies IAS 29 Financial Reporting inHyperinflationary Economies, it recognises as an expense the part of borrowing coststhat compensates
19、 for inflation during the same period in accordance withparagraph 21 of that Standard.Borrowing costs eligible for capitalisation10The borrowing costs that are directly attributable to the acquisition, constructionor production of a qualifying asset are those borrowing costs that would havebeen avoi
20、ded if the expenditure on the qualifying asset had not been made.Whenan entity borrows funds specifically for the purpose of obtaining aparticular qualifying asset, the borrowing costs that directly relate to thatqualifying asset can be readily identified.11It may be difficult to identify a direct r
21、elationship between particular borrowingsand a qualifying asset and to determine the borrowings that could otherwise havebeen avoided. Such a difficulty occurs, for example, when the financing activityof an entity is co-ordinated centrally. Difficulties also arise when a group uses arange of debt in
22、struments to borrow funds at varying rates of interest, and lendsthose funds on various bases to other entities in the group. Other complicationsarise through the use of loans denominated in or linked to foreign currencies,when the group operates in highly inflationary economies, and from fluctuatio
23、nsin exchange rates. As a result, the determination of the amount of borrowingcosts that are directly attributable to the acquisition of a qualifying asset isdifficult and the exercise of judgement is required.12To the extent that an entity borrows funds specifically for the purpose ofobtaining a qu
24、alifying asset, the entity shall determine the amount of borrowingcosts eligible for capitalisation as the actual borrowing costs incurred on thatborrowing during the period less any investment income on the temporaryinvestment of those borrowings.? IASCF1373IAS 2313The financing arrangements for a
25、qualifying asset may result in an entityobtaining borrowed funds and incurring associated borrowing costs before someor all of the funds are used for expenditures on the qualifying asset. In suchcircumstances, the funds are often temporarily invested pending theirexpenditure on the qualifying asset.
26、 In determining the amount of borrowingcosts eligible for capitalisation during a period, any investment income earned onsuch funds is deducted from the borrowing costs incurred.14To the extent that an entity borrows funds generally and uses them for thepurpose of obtaining a qualifying asset, the e
27、ntity shall determine the amount ofborrowing costs eligible for capitalisation by applying a capitalisation rate to theexpenditures on that asset. The capitalisation rate shall be the weighted averageof the borrowing costs applicable to the borrowings of the entity that areoutstanding during the per
28、iod, other than borrowings made specifically for thepurpose of obtaining a qualifying asset. The amount of borrowing costs that anentity capitalises during a period shall not exceed the amount of borrowing costsit incurred during that period.15In some circumstances, it is appropriate to include all
29、borrowings of the parentand its subsidiaries when computing a weighted average of the borrowing costs;in other circumstances, it is appropriate for each subsidiary to use a weightedaverage of the borrowing costs applicable to its own borrowings.Excess of the carrying amount of the qualifying asset o
30、ver recoverable amount16When the carrying amount or the expected ultimate cost of the qualifying assetexceeds its recoverable amount or net realisable value, the carrying amount iswritten down or written off in accordance with the requirements of otherStandards. In certain circumstances, the amount
31、of the write-down or write-offis written back in accordance with those other Standardsmencement of capitalisation17An entity shall begin capitalising borrowing costs as part of the cost of aqualifying asset on the commencement date. The commencement date forcapitalisation is the date when the entity
32、 first meets all of the followingconditions: (a)it incurs expenditures for the asset;(b)it incurs borrowing costs; and (c)it undertakes activities that are necessary to prepare the asset for itsintended use or sale.18Expenditures on a qualifying asset include only those expenditures that haveresulte
33、d in payments of cash, transfers of other assets or the assumption ofinterest-bearing liabilities. Expenditures are reduced by any progress paymentsreceived and grants received in connection with the asset (see IAS 20 Accounting for?1374 IASCFIAS 23Government Grants and Disclosure of Government Assi
34、stance). The average carryingamount of the asset during a period, including borrowing costs previouslycapitalised, is normally a reasonable approximation of the expenditures to whichthe capitalisation rate is applied in that period.19The activities necessary to prepare the asset for its intended use
35、 or sale encompassmore than the physical construction of the asset. They include technical andadministrative work prior to the commencement of physical construction, suchas the activities associated with obtaining permits prior to the commencement ofthe physical construction. However, such activitie
36、s exclude the holding of anasset when no production or development that changes the assets condition istaking place. For example, borrowing costs incurred while land is underdevelopment are capitalised during the period in which activities related to thedevelopment are being undertaken. However, bor
37、rowing costs incurred whileland acquired for building purposes is held without any associated developmentactivity do not qualify for capitalisation.Suspension of capitalisation20An entity shall suspend capitalisation of borrowing costs during extendedperiods in which it suspends active development o
38、f a qualifying asset.21An entity may incur borrowing costs during an extended period in which itsuspends the activities necessary to prepare an asset for its intended use or sale.Such costs are costs of holding partially completed assets and do not qualify forcapitalisation. However, an entity does
39、not normally suspend capitalisingborrowing costs during a period when it carries out substantial technical andadministrative work. An entity also does not suspend capitalising borrowingcosts when a temporary delay is a necessary part of the process of getting an assetready for its intended use or sa
40、le. For example, capitalisation continues duringthe extended period that high water levels delay construction of a bridge, if suchhigh water levels are common during the construction period in the geographicalregion involved.Cessation of capitalisation22An entity shall cease capitalising borrowing c
41、osts when substantially all theactivities necessary to prepare the qualifying asset for its intended use or sale arecomplete.23An asset is normally ready for its intended use or sale when the physicalconstruction of the asset is complete even though routine administrative workmight still continue. I
42、f minor modifications, such as the decoration of a propertyto the purchasers or users specification, are all that are outstanding, thisindicates that substantially all the activities are complete.24When an entity completes the construction of a qualifying asset in parts and eachpart is capable of be
43、ing used while construction continues on other parts, theentity shall cease capitalising borrowing costs when it completes substantially allthe activities necessary to prepare that part for its intended use or sale.? IASCF1375IAS 2325A business park comprising several buildings, each of which can be
44、 usedindividually, is an example of a qualifying asset for which each part is capable ofbeing usable while construction continues on other parts. An example of aqualifying asset that needs to be complete before any part can be used is anindustrial plant involving several processes which are carried
45、out in sequence atdifferent parts of the plant within the same site, such as a steel mill.Disclosure26An entity shall disclose:(a)the amount of borrowing costs capitalised during the period; and(b)the capitalisation rate used to determine the amount of borrowing costseligible for capitalisation.Tran
46、sitional provisions27When application of this Standard constitutes a change in accounting policy, anentity shall apply the Standard to borrowing costs relating to qualifying assets forwhich the commencement date for capitalisation is on or after the effective date.28However, an entity may designate
47、any date before the effective date and apply theStandard to borrowing costs relating to all qualifying assets for which thecommencement date for capitalisation is on or after that date.Effective date29An entity shall apply the Standard for annual periods beginning on or after1January 2009. Earlier a
48、pplication is permitted. If an entity applies the Standardfrom a date before 1 January 2009, it shall disclose that fact.Withdrawal of IAS 23 (revised 1993)30This Standard supersedes IAS 23 Borrowing Costs revised in 1993.?1376 IASCFIAS 23AppendixAmendments to other pronouncements The amendments in
49、this appendix shall be applied for annual periods beginning on or after1January2009. If an entity applies this Standard for an earlier period, the amendments in thisappendix shall be applied for that earlier period. In the amended paragraphs, new text is underlinedand deleted text is struck through.* * * * *The amendments contained in this appendix when this IFRS was issued in 2007 have been incorporatedinto the relevant IFRSs published in this volume.? IASCF1377IAS 23Approval of IAS 23 by the Board