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AS 19 Borrowing Cost - Coggle Diagram
AS 19 Borrowing Cost
- Borrowing Costs Components
- Interest and Commitment Charges.
- Amortization: Discount/Provision, Ancillary Costs.
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- Foreign Currency Exchange Differences.
- Borrowing Cost Capitalization
- Eligible Amount: Incurred Cost minus Temporary Investment Income.
- Use Criteria: Linked to Qualifying Asset.
- Capitalization Rate: Weighted Average of Costs.
- Limit: Do Not Exceed Actual Incurred Costs.
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- Non-Liability Equity Items.
- Capitalization Conditions
- Direct Attribution: Acquisition, Construction, Production.
- Future Economic Benefits.
- Reliable Cost Measurement.
- Context: Funding for Fixed Asset Acquisition/Construction.
- Focus: Interest and Borrowing Cost Treatment.
- Prescribe Treatment: Borrowing Costs in Accounting.
- Decision: Capitalize or Expense Costs.
- Qualifying Asset Definition
- Criteria: Substantial Time for Use/Sale (Over One Period).
- Examples: Under-Construction Tangibles, Developing Intangibles, Investment Property, Special Inventory.
- Expenditure on Qualifying Assets
- Inclusions: Cash, Asset Transfers, Interest-Bearing Liabilities.
- Deductions: Progress Payments, Grants.
- Suspension of Capitalization
- Criteria: Extended Development Interruption.
- Exception: Temporary Delays.
- Policy on Borrowing Costs.
- Capitalized Cost Amount During Period.
- Capitalization: Linked to Qualifying Asset Acquisition/Construction.
- Commencement of Capitalization
Criteria:
- Borrowing Costs Incurred.
- Essential Activities in Progress.
- Ongoing Expenditure for Asset.
- When: Asset Preparation Activities Largely Complete.