IAS 23 — Borrowing Costs
Modules of the standard
- Concepts34 publishedNormative and pedagogical mapping.
- Questions71 publishedTrue/false, quizzes, calculations, entries, mini-cases, judgment.
- Practical cases5 publishedProgressive cases, from beginner to expert.
- Workpapers4 publishedWorking papers with calculations and entries.
- Professional file1 publishedSimulation of a full engagement.
- Exams2 publishedSealed, versioned final exams.
- Explanations (lessons)12 publishedLesson explanations, chapter by chapter.
Practical cases
- Five assets: qualifying or not, interest expensed or includedL1Beginner
- Specific borrowing: actual costs, investment income on temporary investment and eligible amountL2Intermediate
- General borrowings: weighted expenditure, capitalisation rate and capL3Advanced
- Construction site: start, extended interruption, temporary delays and end of inclusionL3Advanced
- Asset financed by a specific borrowing and an asset grant: cost, depreciation, profit or loss and financial statementsL4Expert
- File of a capitalised project: capitalisation of borrowing costs, suspension, placing in service and interaction with an asset grantL4Expert
Workpapers
Concepts by topic
Mapping texts (concept labels, objectives, paragraph summaries) are available in French only for now.
The principle: capitalise or expense
- Principle of the standardCore2 questions
- Capitalise or expenseCore3 questions
- Conditions for capitalisationImportant1 question
- Directly attributable costsCore3 questions
Scope and exemption
- Scope of the standardImportant1 question
- Scope exemption (para. 4)Important1 question
Qualifying asset and borrowing costs: the definitions
- The qualifying assetCore2 questions
- Borrowing costsCore2 questions
- Examples of qualifying assetsCore2 questions
The components of borrowing costs
- Interest and lease liabilitiesImportant2 questions
- Exchange differences regarded as interestAdvanced1 question
Specific borrowings
- Actual costs of the specific borrowingCore3 questions
- Temporary investment incomeCore3 questions
- Complements on specific borrowingsImportant1 question
General borrowings and the cap
- The capitalisation rateCore4 questions
- Specific borrowing outstanding after completionAdvanced2 questions
- Group borrowingsAdvanced2 questions
- The cap at costs incurredCore3 questions
Commencement of capitalisation and eligible expenditure
- The three elements of commencementCore3 questions
- Eligible expenditureCore4 questions
- Land awaiting with no activityImportant1 question
Suspension of capitalisation
- Extended interruption of active developmentCore3 questions
- No suspension: technical work and inherent delaysCore3 questions
Cessation of capitalisation
- Substantial completionCore3 questions
- Asset completed in partsAdvanced1 question
Disclosures
- Amount of borrowing costs capitalisedImportant1 question
- Capitalisation rate usedImportant2 questions
Transition and effective dates
- Original provisions (2007)Advanced1 question
- Annual Improvements 2015-2017Advanced1 question
Boundaries with other standards
- Interaction with IAS 36 and IAS 2: recoverable amountImportant3 questions
- Interaction with IAS 16Important2 questions
- Interaction with IAS 2Important1 question
- Interaction with IAS 38Advanced1 question
- Interaction with IAS 20: asset grantsImportant3 questions