Comparison with International Pronouncements

AASB 123 and IAS 23

AASB 123 is equivalent to IAS 23 Borrowing Costs issued by the IASB.

Paragraphs that have been added to this Standard (and do not appear in the text of the equivalent IASB Standard) are identified with the prefix “Aus”, followed by the number of the relevant IASB paragraph and decimal numbering. Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Compliance with IAS 23

Entities that comply with AASB 123 will simultaneously be in compliance with IAS 23.

AASB 123 and IPSAS 5

The International Public Sector Accounting Standards (IPSASs) are issued by the Public Sector Committee of the International Federation of Accountants.

IPSAS 5 Borrowing Costs (May 2000) is drawn primarily from IAS 23. The main differences between IPSAS 5 and AASB 123 are:

(a) commentary additional to that in AASB 123 has been included in IPSAS 5 to clarify the applicability of the standard to accounting by public sector entities; and

(b) IPSAS 5 contains a different set of definitions of technical terms from AASB 123 (paragraph 4).