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AASB 123 - Borrowing Costs

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Summary 
Developments, Key Differences & History 
Compared to IFRS 
Interpretations 
Rejection Notices 
Questions & Answers 
Articles 
AASB website 

 
Developments
  • AASB Developments 
     
    • July 2008 
      AASB 2008-5 Amendments to Australian Accounting Standards arising from Annual Improvements Project amends paragraph 6 to restrict the type of costs which may be considered borrowing costs and adds paragraph 29A. It is applicable from 1 January 2009, with early application permitted.
Key Differences 
 
AASB 123 reissued supersedes AASB 123 (issued 2004). The main differences from AASB 123 as issued in July 2004 is that the choice between capitalisation of borrowings or expensing has been removed; the reissued standard requires capitalisation of borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. 
 
History
  • July 2004: AASB 123 was issued.
    •  
     
  • June 2007: AASB 123 was reissued and is applicable from 1 January 2009, with early adoption permitted from 1 January 2005.
Compiled Standards 
A list of the omnibus amending standards that have affected this standard since its release are included here as is the date when the relevant changes become operative.  
 
Omnibus amending standards are available on the AASB website as are compiled standards incorporating omnibus amendments as soon as they are completed by the AASB. Details of the changes made by each omnibus are summarised in ANT and Charter’s "The Panel" as they are released. For a quick overview of the new material applying at 30 June 2008 click here.