06-29-2010, 03:36 PM
Dear Umar
From your post below, I did not say that you can capitalised he borrowing cost. The asset you are referring to does not categorised as financial asset, I guess. Qualifying asset does not have the same meaning as an asset. As per IAS 23, Qualifying assets , are assets that takes substancial period of time to get ready for its intended use or sale i.e, a acquisition of a mild plant. In case where an asset does not meet the definition of a qualifying asset , IAS 23 does not permit capitalisation of the borrowing cost. Let me know what asset you are referring to , I will tell you if the asset is a qualifying asset.
Your second question is referred to
When an asset is revalued , the depreciation is also revised based on the new life span of the asset . And new depreciation is charged based on the revalued amount.
From your post below, I did not say that you can capitalised he borrowing cost. The asset you are referring to does not categorised as financial asset, I guess. Qualifying asset does not have the same meaning as an asset. As per IAS 23, Qualifying assets , are assets that takes substancial period of time to get ready for its intended use or sale i.e, a acquisition of a mild plant. In case where an asset does not meet the definition of a qualifying asset , IAS 23 does not permit capitalisation of the borrowing cost. Let me know what asset you are referring to , I will tell you if the asset is a qualifying asset.
Your second question is referred to
When an asset is revalued , the depreciation is also revised based on the new life span of the asset . And new depreciation is charged based on the revalued amount.
