02-25-2010, 02:41 PM
According to IAS-23,Borrowing Costs, the definition of borrowing cost include exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. So this treatment is still allowed according to IAS-23.See IAS-21 and IAS-2 for more details. I will recommend you first go through all relevant standards and then consult opinions of ICAP.
