There is a criteria or conditions that help to classify an asset as qualifying asset; thus, asset that takes substantial period of time to acquire or construct. The standard gave other exceptions though. Therefore, if an intangible asset meet the criteria for a qualifying asset and the entity uses loan or other form of credit facilities to finance the acquisition or construction of the intangible asset, then a borrowing cost must be taken into consideration; if and only if the transaction meets all the requirements outline in the standard, IAS 23.
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Why did we put intangible assets as examples of a qualifying asset ...do people borrow money for these intangible assets
There is a criteria or conditions that help to classify an asset as qualifying asset; thus, asset that takes substantial period of time to acquire or construct. The standard gave other exceptions though.
Therefore, if an intangible asset meet the criteria for a qualifying asset and the entity uses loan or other form of credit facilities to finance the acquisition or construction of the intangible asset, then a borrowing cost must be taken into consideration; if and only if the transaction meets all the requirements outline in the standard, IAS 23.