Interaction with IAS 38

Learning objectives

• Identify an intangible asset under development that may be a qualifying asset (IAS 38).L3

Normative references

• IAS 23 §7Depending on the circumstances, the following may be qualifying assets: inventories, manufacturing plants, power generation facilities, intangible assets, investment properties, bearer plants; financial assets, inventories produced over a short period of time, and assets that are ready for their intended use or sale when acquired are not qualifying assets.

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

1 question

• An entity develops software over 24 months in the development phase, financed by a dedicated loan. What can be said about applying the borrowing costs standard to this project?L3