Programme Objective

To enable participants to understand the core principle of FRS 23 and apply the requirements relating to the accounting and reporting of borrowing costs.

To ensure that participants are able to:

• Understand the definition of borrowing costs and other relevant terms in FRS 23
• Understand the rationale for the core principle of FRS 23
• Identify qualifying asset and the borrowing costs that are eligible for capitalization
• Determine events that require the capitalization, suspension of capitalization and cessation of capitalization of borrowing costs
• Determine the amount of borrowing costs that are eligible for capitalization
• Consider the impact of special situations, e.g. intercompany borrowings
• Understand the significance of disclosure requirements in FRS 23 

Programme Outline

• Scope of FRS 23
• Definition of borrowing costs, qualifying asset and relevant terms in FRS 23
• Core principle in FRS 23
• Recognition requirements in FRS 23
  • Determining borrowing costs eligible for capitalization
  • Treatment of excess of carrying amount over the recoverable amount
  • Events relating to commencement of capitalization
  • Special considerations relating to suspension of capitalization
  • Events relating to cessation of capitalization
• Disclosure requirements

Training Methodology
Lecture style, with Exercises/Case Studies

Closing Date for Registration
1 week before programme or until full enrolment

Intended For

A Foundation to Intermediate level programme intended for both Practising and Non-Practising Accountants.

Programme Facilitator(s)