IAS 23 Borrowing cost
Course Description
Imagine the following situation: the entity has started a project to build an office building to use it as its local headquarter. The entity did not have enough financing, so entered into a loan agreement with the aim of financing the construction.
Shall the entity capitalise borrowing costs? After answering this question (whether the asset is a qualifying asset), other questions shall be elaborated, such as what is meant by borrowing costs, when to start capitalisation and what the period of capitalisation is.
This course provides answers to these question using practical examples and interim tests to enhance understanding. You will learn that according to IAS 23 standard borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the assets if certain criteria are met.
Course Structure
This eLearn introduces the following topics:
- Objective, scope and definitions
- Accounting methods
- Derecognition of investment
- Disclosure
- Final quiz
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- identify qualifying assets
- define borrowing costs eligible for capitalisation
- define appropriate period of capitalisation
- understand and apply recognition principles of borrowing costs
- calculate amount to capitalise
- review IAS 23 standard’s disclosure requirements
Course Structure
This eLearn introduces the following topics:
- Objective, scope and definitions
- Accounting methods
- Derecognition of investment
- Disclosure
- Final quiz
Should Attend
This course is intended for professionals in financial and actuarial functions.
Prerequisites
There are no prerequisites to follow this eLearn
Assessment
A final quiz will test your knowledge.
Key-Features
This course will enable you to:
- identify qualifying assets
- define borrowing costs eligible for capitalisation
- define appropriate period of capitalisation
- understand and apply recognition principles of borrowing costs
- calculate amount to capitalise
- review IAS 23 standard’s disclosure requirements
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