08-17-2006, 05:02 AM
yaar ok u both mite hav different viewpoint
no problem
& perhaps i also cant convince U people
But JUst look Y IASB needed different paras givin treatment of specific & general borrowing
just b/c they r 2 be treated differently
BUT U are just treating both specific & general borrwing capitalisation in the same way
look the 2 paras
IAS 23.15
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings
IAS 23.17
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset
theek hai these 2 paras are different at all both in structure,in meaning etcetc..
If IAS JUst wanted treatment as U people r saying then wording of the capitalisation paras shud have been like this
4 specific borrowing
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined by applying the specific borrowing rate to the expenditures on that asset
4 General borrwing
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset
NOW 1nce again look the difference
and look this with a viewpoint that i mite also be correct
+1 thing more
leave that PAC but ACCA solutions also follow my treatment
the teacher i am talking about is a very competent teacher...& i only say this abt him...not 4 our other acc.teacher
he is 4 the last 9 yrs teaching MOd C students,Mod F students (currently enrolled app 100 students),ACCA students and students hav been passing exam + achieving distinctions
no problem
& perhaps i also cant convince U people
But JUst look Y IASB needed different paras givin treatment of specific & general borrowing
just b/c they r 2 be treated differently
BUT U are just treating both specific & general borrwing capitalisation in the same way
look the 2 paras
IAS 23.15
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings
IAS 23.17
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset
theek hai these 2 paras are different at all both in structure,in meaning etcetc..
If IAS JUst wanted treatment as U people r saying then wording of the capitalisation paras shud have been like this
4 specific borrowing
To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation on that asset should be determined by applying the specific borrowing rate to the expenditures on that asset
4 General borrwing
To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset
NOW 1nce again look the difference
and look this with a viewpoint that i mite also be correct
+1 thing more
leave that PAC but ACCA solutions also follow my treatment
the teacher i am talking about is a very competent teacher...& i only say this abt him...not 4 our other acc.teacher
he is 4 the last 9 yrs teaching MOd C students,Mod F students (currently enrolled app 100 students),ACCA students and students hav been passing exam + achieving distinctions
