Global Standards for the world economy

Tuesday 16 July 2019

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The IASB agreed with the recommendation of the Interpretations Committee to clarify the wording in IAS 23 through an annual improvement

 22 October 2015


The IASB discussed a recommendation from the Interpretations Committee to amend IAS 23 Borrowing Costs to clarify the calculation of the capitalisation rate on general borrowings to be applied to qualifying assets. Specifically, the IASB considered whether specific borrowings should be transferred to the general borrowings pool once the construction of a qualifying asset has been completed.

The IASB agreed with the Interpretations Committee’s conclusion that such specific borrowings should be included in the general borrowings pool and that an amendment should be made to IAS 23 to require this treatment.

The IASB also decided that:

  1. the amendment should be included in the next cycle of annual improvements (2015–2017); and
  2. the proposed amendment should be applied prospectively with early application permitted.

All fourteen IASB members agreed with these decisions.

Next steps

The amendment will be included in the Exposure Draft Annual Improvements to IFRS 2015–2017 Cycle.


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