Under FRS 123, What Is The Criteria, Accounting Treatment of Borrowing Costs and The Limitations to The Amount That Can Be Capitalized

Tweet Criteria for Capitalization of borrowing costs: FRS 123 prescribes that borrowing costs can be capitalized on qualifying assets. Borrowing costs definition are interest and other costs incurred in relation to borrowing of funds. This includes interest amortization of discounts, premiums and ancillary costs relating to borrowings. For qualifying asset, it is an asset that […]