Self-constructed assets

Learning objectives

• Determine the cost of a self-constructed asset, excluding internal profits and abnormal costs.L2, L3
• Identify when IAS 23 must be applied to the borrowing costs of a self-constructed asset.L3
• Analyse a construction file and prepare the calculation of the cost to be capitalised.L4

Normative references

• IAS 16 §22Self-constructed assets: same principles as for an acquisition; internal profits eliminated; abnormal costs excluded; IAS 23 for borrowing costs.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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