Proposed standard from IPSASB
The International Public Sector Accounting Standards Board (IPSASB) has issued exposure draft ED 35 IPSAS 5 Borrowing Costs (Revised 200X) for comment. Members may wish to comment on the ED because
the proposed IPSAS 5 differs from the IFRS equivalent, IAS 23 Borrowing Costs, mainly in respect of recognition.
IAS 23 requires borrowing costs, directly attributable to the acquisition, construction or production of qualifying assets, to be capitalised. The proposed IPSAS 5 requires immediate recognition of borrowing costs as an expense except where the costs are specifically incurred for the acquisition, construction or production of a qualifying asset.
A copy of ED 35 is available from the International Federation of Accountants. Members are invited to submit their comments to CPA Australia via email professionalstandards@cpaaustralia.com.au by 10 December 2008.