Written by: Barbora Choi on Tue Nov 18
IAS 23 Borrowing Costs
Interest and other funds incurred in connection with borrowing of funds are borrowing costs. If incurred in connection with a qualifying asset these costs can become part of asset's cost.
"The rich rule over the poor, and the borrower is slave to the lender."
Companies using borrowed funds for acquisition, construction or production of a qualifying asset are able to capitalize those costs on the balance sheet rather than expensing them.
In today's carousel:
🔹 borrowing costs on intangible assets,
🔹 management performance measure in Poland,
&
🔹 FC Real Madrid can play disclosures really well! (check out their full financials).
headline quote is from the Book of Proverbs, chapter 22, verse 7
