IAS 23-Borrowing Cost
Which cost on borrowed funds can an entity capitalized as part of the cost of their qualifying asset? This video provides all information needed to understand the international accounting standard 23, borrowing cost and its applications. #IAS23
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Great piece
Helpful video. Love it
@ronasacademy
3 жыл бұрын
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Why did we put intangible assets as examples of a qualifying asset ...do people borrow money for these intangible assets
@ronasacademy
2 жыл бұрын
There is a criteria or conditions that help to classify an asset as qualifying asset; thus, asset that takes substantial period of time to acquire or construct. The standard gave other exceptions though. Therefore, if an intangible asset meet the criteria for a qualifying asset and the entity uses loan or other form of credit facilities to finance the acquisition or construction of the intangible asset, then a borrowing cost must be taken into consideration; if and only if the transaction meets all the requirements outline in the standard, IAS 23.