Authors : L.I. Kulikova, F.N. Akhmedzyanova, A.V. Ivanovskaya and I.A. Ivanovskiy
Abstract: The study suggests a refined method for determining the value of capitalized borrowing costs obtained for general purpose but partly used to finance the cost of qualifying asset. The method complies with the general concept of IAS 23 “Borrowing Costs”. The given methodology was developed with due account of various factors influencing the procedure for capitalized borrowing costs calculation. To implement computation algorithm suggested in the study it is recommended to use off-balance sheet account “Cost of Qualifying Asset” comprising the information based on the cash principle.
L.I. Kulikova, F.N. Akhmedzyanova, A.V. Ivanovskaya and I.A. Ivanovskiy, 2017. Improving the Methodology for Determining the Value of Capitalized Borrowing Costs. Journal of Engineering and Applied Sciences, 12: 8201-8206.