Original provisions (2007)

Learning objectives

• Identify the original transition provisions: application to qualifying assets for which capitalisation commences on or after the effective date or an earlier date designated by the entity.L3

Normative references

• IAS 23 §27Original transition: when application of the Standard constitutes a change in accounting policy, it applies to borrowing costs relating to qualifying assets for which the commencement date for capitalisation is on or after the effective date.
• IAS 23 §28However, an entity may designate any date before the effective date and apply the Standard to borrowing costs relating to all qualifying assets for which the commencement date for capitalisation is on or after that date.
• IAS 23 §29Effective date: annual periods beginning on or after 1 January 2009; earlier application is permitted, with disclosure if the Standard is applied before that date.

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

1 question

• The original transition and effective date provisions of the standard (2007 revision) accompanied a substantive change in the treatment of borrowing costs. Which one?L3