[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-374222-105":59,"doc-detail-374222-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","cracking-ias-23-borrowing-costs-the-ultimate-studygram-guide-bilingual-edition","Cracking IAS 23 - Borrowing Costs - The Ultimate Studygram Guide(Bilingual Edition)","","Comprehensive exam-focused study notes on IAS 23 Borrowing Costs, explaining what qualifies as a borrowing cost and which assets qualify for capitalisation. Covers specific and general borrowings, including the logic for capitalising interest using formulas based on outstanding loan amounts, rates, and months active while excluding suspension periods. Includes worked applications with numerical examples, calculation of the capitalisation rate, expenditure base adjustments for progress payments and grants, mandatory disclosure requirements, and practice question timeline mapping to split capitalised versus expensed interest.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/cracking-ias-23-borrowing-costs-the-ultimate-studygram-guide-bilingual-edition/374222/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/cracking-ias-23-borrowing-costs-the-ultimate-studygram-guide-bilingual-edition/374222.png","ImageObject",300,407,{"name":92,"@type":93},"supergirl","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-08","2026-09-23",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What counts as a borrowing cost under IAS 23?","Question",{"text":113,"@type":114},"Borrowing costs include interest expense, certain equity-cost elements, and dividends related to specific equity situations. The notes emphasize that share capital-related dividend payments are not treated as borrowing costs; the focus is on loans, debentures, and overdrafts.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"How do you calculate interest to be capitalised for specific borrowings?",{"text":118,"@type":114},"The guide uses a formula based on interest incurred on specific borrowing: outstanding loan amount × rate × months outstanding / 12. It also instructs excluding suspension periods and stopping when the project ceases, then subtracting temporary investment income.",{"name":120,"@type":111,"acceptedAnswer":121},"What mandatory disclosures are required by IAS 23?",{"text":122,"@type":114},"IAS 23 requires formal disclosure of (1) the amount of borrowing costs capitalised during the period and (2) the capitalisation rate used to determine which borrowing costs are eligible for capitalisation.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},374222,1790528155,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":39,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":46,"preview_page_count":4},962088121634,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","●·Loan processing &commitment fees  \n●·Bank charges,commissions,documentation/legal charges  \n●·Exchange differences on foreigncurrency borrowings  \n# Cracking IAS 23:Borrowing Costs\n\nThe Ultimate Studygram Guide(Bilingual Edition)  \n## LO1:What is a Borrowing Cost?\n\nTHE VIP LIST(INCLUDED)  \nBOUNCED(EXCLUDED)  \n●·Interest expense(effective interestmethod)  \n●·Actual or imputed cost of equity  \n●·Dividends paid to equity-holders  \n●·Issue of share capital/right shares  \n2aroori Baat!  \nIssue of share capital pe jo  \ndividend pay hota hai,that  \nis NOT a borrowing cost.  \nSirf loans,debentures,aur  \noverdrafts ko dekhein!  \nExam Tip!  \nYeh standard  \nmechanics aur logic  \ndono check karta  \nhai.Let's master it  \nstep-by-step!  \n## LO2:The Qualifying Asset\n\nA Qualifying Asset necessarily takes a substantial period of timeto get ready for intended use or sale.  \n## LO4:Specific Borrowings\n\nExam Tip  \nSpecific loan ka paisa agal  \n## The Specific Borrowings Recipe\n\nfarigh pada hai,toh usk  \ninvest kar ke jo income  \nayegi,woh interest  \nexpense joh capitalise huc  \nInterest incurred on specific borrowing(Loan outstanding×rate×months outstanding*/12)  \nusay kam karegi(minus  \nhogi)!  \nTemporary investment income(Ilnvestment made ×rate×months outstanding*/12)  \nBorrowing Cost to be Capitalized  \n*Months outstanding shall exclude suspension periods and stop when the project ceases.  \n## LO4:Specific Borrowings Application\n\nData:Okara Engineering(Ex.5)  \nSolution:The Math  \n● Bond issued:Rs.25,000,000  \nActual borrowing costs:  \n1,250,000  \n·Construction costs incurred:Rs.  \nLess:Temp investment income:(780,000)  \n9,000,000  \n·Cost of servicing bond (Interest):Rs.1,250,000Borrowing cost capitalised=470,000  \n·Temporary reinvestment income:Rs.  \n780,000Total CWIP=Construction costs  \n(9,000,000)+Capitalised Interest(470,000)Dekha?25m ka loan tha,par construction cost sir9m lagi.Baqi paisa investTotal CWIP=9,470,000kiya toh income aayi jisneinterest ka bojh kam kardiya.  \nStep-by-step:Pehle  \n## LO5:General Borrowings Application\n\noutstanding time ke  \nhisaab se loan kc  \nweight dein,phir  \ninterest nikalein,aur  \nend pe divide kar  \n## Calculating the Capitalisation Rate(Ex.6)\n\ndein.Easy  \n\n| Bank   | Loan   | Outstanding   | Weighted Loan   | Rate   | Interest   |\n| --- | --- | --- | --- | --- | --- |\n| HBL   | 10m   | 6/12   | 5.00   | 13%   | 0.65   |\n| NBP   | 15m   | 3/12   | 3.75   | 12%   | 0.45   |\n| PICIC   | 20m   | 2/12   | 3.33   | 15%   | 0.50   |\n| TOTALS   | -   | -   | Weighted Loan =12.08   | -   | Total Interest =1.60   |\n\nRate =Weithte Lros 1208=13.25%  \n## LO7:Calculating the Expenditure Base\n\nExpenditures are reduced by progress payments and grants received.  \n## Gross ExpenditureProgressPaymentsGrants\n\nNet Expenditure Base  \nExample 10 Application:Zeal Limited building a dam  \nLine 1:[+]Feb 1:Sub-contract costs=100m  \ngic Cck:bemet e ant orogressmet m,tohamar pwe pi limittak use nahi ho raha. Tohuss pe interest kyun  \nLine 2:[-]Jul 1:Progress payments=(30m)  \nLine 3:[-]Oct 31:Grant received=(10m)  \nCapitalized Borrowing Cost calculated on thesenet layered amounts at 12%rate.  \ncapitalize karein?  \n## LO8:Mandatory Disclosures\n\nThe Disclosure Checklist  \nIAS 23 requires entities to formallydisclose just two specific things intheir financial statements:The amount of borrowingcosts capitalised duringthe period.  \nExam Tip!Disclosures ke pointsexam mein freemarks hote hain.Theory questionsmein inhein lazmilikha karein!  \nThe capitalisation rate usedto determine the amountof borrowing costs eligiblefor capitalisation.  \n## LO9:Practice Question 2(Timeline Mapping)\n\nDekha?Pura saal loan  \nchala,par sirf active  \nconstruction walay 8  \nmonths ka interest  \nLoan Rs.1m @15%(Jan 1).Construction:Mar 1 to Oct 31.  \nCWIP mein gaya.Baq  \nP&L mein expense out  \nho gaya.  \nOct  \nDec 31  \nJan 1  \nMar  \nMar  \nApr  \nMay  \nJun  \nJul  \nAug  \nSep  \nOct  \nDec  \nJan  \nNov  \nRed Zone→ExpensedGreen Zone→CapitalizedRed Zone→Expensed  \n(1,000","cbCaiudiJvwUfheg","https://ap.wps.com/l/cbCaiudiJvwUfheg","pdf",1162264,"English","# LO1: What is a Borrowing Cost?\n## LO2: The Qualifying Asset\n# LO4: Specific Borrowings\n## The Specific Borrowings Recipe\n## LO4: Specific Borrowings Application\n# LO5: General Borrowings Application\n## Calculating the Capitalisation Rate (Ex. 6)\n# LO7: Calculating the Expenditure Base\n# LO8: Mandatory Disclosures\n# LO9: Practice Question 2 (Timeline Mapping)","[{\"question\":\"What counts as a borrowing cost under IAS 23?\",\"answer\":\"Borrowing costs include interest expense, certain equity-cost elements, and dividends related to specific equity situations. The notes emphasize that share capital-related dividend payments are not treated as borrowing costs; the focus is on loans, debentures, and overdrafts.\"},{\"question\":\"How do you calculate interest to be capitalised for specific borrowings?\",\"answer\":\"The guide uses a formula based on interest incurred on specific borrowing: outstanding loan amount × rate × months outstanding / 12. It also instructs excluding suspension periods and stopping when the project ceases, then subtracting temporary investment income.\"},{\"question\":\"What mandatory disclosures are required by IAS 23?\",\"answer\":\"IAS 23 requires formal disclosure of (1) the amount of borrowing costs capitalised during the period and (2) the capitalisation rate used to determine which borrowing costs are eligible for capitalisation.\"}]","Cracking IAS 23 - Borrowing Costs - The Ultimate Studygram Guide(Bilingual Edition) | PDF",1790201321]