CTHRepealedLegislation
AASB 123 - Borrowing Costs - July 2004
B.5 Borrowing costs within an economic eB.5 Borrowing costs within an economic entity
Start here
Get a plain-English read of B.5 Borrowing costs within an economic e
Turn the raw legal text into a practical explanation grounded in AASB 123 - Borrowing Costs - July 2004.
B.5 Borrowing costs within an economic entity
AASB 1036.5.2.2 contains guidance on circumstances in which the treatment of borrowing costs differs between entities within an economic entity. For example, where a parent entity borrows funds which it then lends to a subsidiary to construct a qualifying asset, AASB 1036.5.2.2 comments that the borrowing costs would be recognised as an expense in the parent entity’s financial report but capitalised to the qualifying asset in the subsidiary’s and economic entity’s financial reports. AASB 123 does not include similar guidance in its text.