Scope exemption (para. 4)

Learning objectives

• Distinguish the assets excluded from the scope (measured at fair value, inventories manufactured in large quantities on a repetitive basis) from qualifying assets.L1, L2, L3

Normative references

• IAS 23 §4Para. 4 provides that an entity is not required to apply the Standard to borrowing costs directly attributable to a qualifying asset measured at fair value (for example a biological asset within IAS 41) or to inventories that are manufactured, or otherwise produced, in large quantities on a repetitive basis.

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

1 question

• For which of the following assets is the entity not required to apply the standard on borrowing costs? Several answers are correct.L2