IAS 23: Borrowing Costs_en

FACULTY OF ECONOMICS & ADMINISTRATIVE SCIENCEs

ACCOUNTING DEPARTEMENT

Report About

IAS 23 Borrowing Costs

Prepared by:

Farah Jalal Abu Daqqa

Supervisor:

Dr. Emad Abu Shabaan

CONTENTS

PART 1 : Introduction & Review

1-1 IAS 23 decision tree – summary

1_2 Executive summary

PART 2 : Scope and definitions

2-1 Scope

2-2 Definition of borrowing costs

2-3 Cost of equity instruments

2-4 Definition of a qualifying assets

2-5 Assets measured at fair value

2-6 Exemption for certain types of inventories

PART 3 : Borrowing costs to be capitalized

3-1 Specific borrowings for a qualifying asset

3-2 General borrowings

3-3 Qualifying assets financed by a combination of general and specific borrowings

3-4 Exchange differences

3-5 Derivative gains or losses

3-6 Other practical issues

PART 4 : Period of capitalization

4-1 Commencement of capitalization

4-2 Suspension of capitalization

4-3 Cessation of capitalization

PART 5 : Group situations

5-1Separate and individual financial statements

5-2 Consolidated financial statements

PART 6 : Effective date and transition

6-1 Existing preparers with a previous policy of expensing borrowing costs

6-2 First-time adopters

Part :7

7_1 conclusion

7_2 references