How should the cost of borrowing funds to acquire or construct property, plant, and equipment be accounted for under IASB rules, as revised in 2007?

Question

Quizplus · Accepted Answer

Under IASB rules, the cost of borrowing funds to acquire or construct property, plant, and equipment should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet. This is in accordance with IAS 23 which requires that borrowing costs directly attributable to the acquisition or construction of qualifying assets should be capitalized as part of the cost of those assets.

How Should the Cost of Borrowing Funds to Acquire or Construct