CONTENTS

Preface

Comparison With International Pronouncements

Accounting Standard

AASB 123 Borrowing Costs

Paragraphs

Objective

Application Aus1.1 – Aus1.9

Scope 1 – 3

Definitions 4 – 6

Borrowing Costs – Benchmark Treatment

Recognition 7 – 8

Disclosure 9

Borrowing Costs – Allowed Alternative Treatment

Recognition 10 – 12

Borrowing Costs Eligible for Capitalisation 13 – 18

Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount 19

Commencement of Capitalisation 20 – 22

Suspension of Capitalisation 23 – 24

Cessation of Capitalisation 25 – 28

Disclosure 29

Differences between AASB 123 and AASB 1036 Page 17

Australian Accounting Standard AASB 123 Borrowing Costs is set out in paragraphs Aus1.1 – 29. All the paragraphs have equal authority. Terms defined in this Standard are in italics the first time they appear in the Standard. AASB 123 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation and Application of Standards, which identifies the UIG Interpretations. In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.