02-18-2010, 07:49 PM
Dard,
It's certainly a matter that how you understand or percieve a thing.
We are seeing 3 varying comments in response to same post of mine (the last one). So, in everymatter understanding plays a role. your conclusion is self-proved.
Let me explain another thing which remained missing. Although, finance lease assets are to be stated at lower of fair value and PV of MLP, which as a result may not strictly be the "fair value" in each case; and which can be used to conclude a bit relaxation in case a qualifying asset is acquired, However, it is imperative to mention (and which has missed in earlier write up) that IAS-23's concept of absorbing borrowing costs has nothing to do with those assets that are stated (strictly) on "FAIR VALUES".
The asset that is stated at Fair Value cannot be deemed as qualifying assets under IAS-23 even if they take time to get ready for intended use or sale.
Reason is clear that, they are already at fair value which cannot be increased by adding up borrowing costs.
Regards,
Kamran.
It's certainly a matter that how you understand or percieve a thing.
We are seeing 3 varying comments in response to same post of mine (the last one). So, in everymatter understanding plays a role. your conclusion is self-proved.
Let me explain another thing which remained missing. Although, finance lease assets are to be stated at lower of fair value and PV of MLP, which as a result may not strictly be the "fair value" in each case; and which can be used to conclude a bit relaxation in case a qualifying asset is acquired, However, it is imperative to mention (and which has missed in earlier write up) that IAS-23's concept of absorbing borrowing costs has nothing to do with those assets that are stated (strictly) on "FAIR VALUES".
The asset that is stated at Fair Value cannot be deemed as qualifying assets under IAS-23 even if they take time to get ready for intended use or sale.
Reason is clear that, they are already at fair value which cannot be increased by adding up borrowing costs.
Regards,
Kamran.
