What is the interaction of IFRS 16, IAS 16, and IAS 23 when a right-of-use asset (RoUA) is used to construct an item of property, plant, and equipment (PPE)? Scenario Entity A enters into a contract for a ground lease of land and begins construction of a manufacturing facility where it will operate its manufacturing … Continue reading IFRS 16, IAS 16, and IAS 23: Timing of Depreciation of a Right of Use Asset and IAS 23 Capitalization
Category: C3 – IAS 23
IAS 23 – BORROWING COSTS
Borrowing costs that directly relate to the acquisition, construction or production of a qualifying asset must be capitalized as a part of the cost of that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to be ready for its intended use or sale. Borrowing costs eligible for capitalization … Continue reading IAS 23 – BORROWING COSTS
