CTHRepealedLegislation
AASB 123 - Borrowing Costs - July 2004
B.1 Capitalisation of borrowing costsB.1 Capitalisation of borrowing costs
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B.1 Capitalisation of borrowing costs
AASB 1036.4.1 to 4.2 require borrowing costs to be recognised as an expense in the reporting period in which they are incurred, except to the extent they are directly attributable to the acquisition, construction or production of a qualifying asset (in which case the borrowing costs were capitalised). AASB 123.Aus1.8 permits this treatment as the allowed alternative. Under the benchmark treatment in AASB 123, borrowing costs are recognised as an expense in the period in which they are incurred.