When there are temporary delays in project schedule. When active development is interrupted for any extended period. When any of the other3 situations happens. During the periods when substantial technical or administrative

When shall the capitalization of borrowing costs in line with IAS 23 be suspended?

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When should the project schedule be developed?
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Mohamed Helal
27-August-2016

When there are temporary delays in project schedule.
When active development is interrupted for any extended period.
When any of the other3 situations happens.
During the periods when substantial technical or administrative

Accounting IFRS

Question added by Anil Lalwani , Chief Accountant , Al Ahli Hospital
Date Posted: 2016/10/16

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3 Answers

by Mohamed Azmy , accounting manager , Leverage for Financial Services

According to IAS 23 capitalization of borrowing cost should be susbended When active development is interrupted for any extended period

Capitalisation should be suspended during periods in which active development is interruptedCapitalisation should be suspended during periods in which active development is interrupt

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by ASAD MEHMOOD , Project Accountant , MRFS Group of UK

IAS Borrowing Costs states that "Capitalization of borrowing cost should be suspend during the period in which active development is interrupted. [IAS.]". Therefore, option2. is the correct.

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