IAS 23 – Borrowing Costs

Abstract

In April 2001 the International Accounting Standards Board (Board) adopted IAS 23 Borrowing Costs, which had originally been issued by the International Accounting Standards Committee in December 1993. IAS 23 Borrowing Costs replaced IAS 23 Capitalisation of Borrowing Costs (issued in March 1984). In March 2007 the Board issued a revised IAS 23 that eliminated the option of immediate recognition of borrowing costs as an expense. Other Standards have made minor consequential amendments to IAS 23. They include Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41) (issued June 2014), IFRS 9 Financial Instruments (issued July 2014), IFRS 16 Leases (issued January 2016) and Annual Improvements to IFRS Standards 2015–2017 Cycle (issued December 2017).