{"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":"This is **AASB 123**, an Australian accounting standard that tells businesses how to treat **borrowing costs** in their financial statements.\n\n**What it does:**\nWhen a company borrows money (like taking out a bank loan), they pay interest and other fees. This standard sets out the rules for when these costs should be:\n- **Recognised as an expense immediately** (deducted from profits right away), or\n- **Capitalised** (added to the cost of an asset being built or acquired, then gradually expensed over time)\n\n**Who it affects:**\n- Companies and other entities that prepare financial statements under Australian accounting standards\n- Particularly relevant for businesses undertaking major construction projects or acquiring qualifying assets that take a substantial period to get ready for use\n\n**Why it matters:**\nThis affects how profitable a company looks in any given year. If borrowing costs are capitalised, profits appear higher in the short term because the interest expense is spread over many years rather than hitting all at once. The standard ensures consistency so investors and regulators can fairly compare different companies' financial health."}},"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"}}