{"id":"F2015L01586","name":"AASB 123 - Borrowing Costs - August 2015","slug":"aasb-123-borrowing-costs-august-2015","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":173131,"registerId":"commonwealth-F2015L01586-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Other enquiries","sectionType":"part","heading":"Other enquiries","content":"## Other enquiries\n\nPhone: (03) 9617 7600\n\nE-mail: standard@aasb.gov.au\n\nCOPYRIGHT\n\n© Commonwealth of Australia 2021\n\nThis compiled AASB Standard contains IFRS Foundation copyright material. Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The National Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.\n\nAll existing rights in this material are reserved outside Australia. Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.","sortOrder":0},{"sectionNumber":"Accounting Standard AASB 123","sectionType":"part","heading":"Accounting Standard AASB 123","content":"# Accounting Standard AASB 123\n\nThe Australian Accounting Standards Board made Accounting Standard AASB 123 Borrowing Costs under section 334 of the Corporations Act 2001 on 7 August 2015.\n\nThis compiled version of AASB 123 applies to annual periods beginning on or after 1 July 2021. It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 6 March 2020 (see Compilation Details).","sortOrder":1}],"analysis":{"kimi_summary":{"content_quality":"rejected","complexity_score":5,"rejection_reason":"The provided text is only the header/front matter of AASB 123. It contains only copyright notices, contact information, and the standard's making clause. The actual substantive provisions (definitions, recognition criteria, measurement rules, disclosure requirements) are not included in this fragment. This is insufficient to provide a meaningful analysis of the legislation's content.","scope_assessment":{"changed":false,"description":"This is a compiled version of AASB 123 from August 2015, updated to apply to periods beginning on or after 1 July 2021. The scope remains consistent with the original standard's purpose of regulating the accounting treatment of borrowing costs. The amendments incorporated up to March 2020 appear to be technical updates rather than fundamental scope changes."},"complexity_factors":["Multiple defined terms including 'borrowing costs', 'qualifying asset', and 'capitalisation rate'","Specific criteria for when capitalisation must begin, be suspended, and cease","Distinction between specific borrowings and general borrowings with different calculation methods","Cross-references to other AASB Standards (notably AASB 116 Property, Plant and Equipment)","Exceptions for certain types of assets (inventories measured at fair value, assets with short production periods)","Disclosure requirements for both capitalised and expensed borrowing costs"],"plain_english_summary":"AASB 123 sets the rules for how borrowing costs are reported — whether interest and related fees are expensed immediately or capitalised into the cost of a qualifying asset under construction or acquisition.\n\nIt applies to entities preparing Australian financial statements, especially those with long‑term projects, and matters because capitalising versus expensing borrowing costs materially changes reported profit and comparability for investors and regulators."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The compiled Standard incorporates amendments made up to 6 March 2020 and specifies an effective date for annual periods beginning on or after 1 July 2021 (source text). Those incorporated amendments and the updated application date indicate the Standard's scope and operative details have been modified from the original 7 August 2015 instrument; the source text does not list which specific provisions were changed."},"complexity_factors":["Legal foundation under section 334 of the Corporations Act 2001 (source text) adds statutory force and compliance obligations.","Compiled version incorporates amendments made by other AASB Standards up to 6 March 2020 (source text), requiring readers to track multiple, integrated changes.","Effective date: applies to annual periods beginning on or after 1 July 2021 (source text), creating transition and timing issues for reporters.","Contains IFRS Foundation copyright material (source text), indicating alignment with international standards and potential for cross-reference complexity.","Technical accounting judgements implied by a standard governing borrowing-cost treatment, which typically interact with entity-specific facts and other standards.","Potential need to adjust accounting policies, disclosures and systems to reflect amended requirements — increases implementation and compliance burden."],"plain_english_summary":"AASB 123 is the Australian accounting standard that sets the rules for how entities must treat borrowing costs in their financial statements. It was made under section 334 of the Corporations Act 2001. The compiled version applies to annual periods beginning on or after 1 July 2021 and incorporates amendments made up to 6 March 2020, so affected reporters may need to change accounting policies, disclosures and implementation timing to comply."}},"importantCases":[],"_links":{"self":"/api/acts/aasb-123-borrowing-costs-august-2015","history":"/api/acts/aasb-123-borrowing-costs-august-2015/history","analysis":"/api/acts/aasb-123-borrowing-costs-august-2015/analysis","conflicts":"/api/acts/aasb-123-borrowing-costs-august-2015/conflicts","importantCases":"/api/acts/aasb-123-borrowing-costs-august-2015/important-cases","documents":"/api/acts/aasb-123-borrowing-costs-august-2015/documents"}}