IFRS Snapshot: IAS 23 Borrowing Costs

Category: IFRS

IFRS Snapshot: IAS 23 Borrowing Costs


Apply to: accounting for borrowing costs. Borrowing costs = interest & other costs incurred in connection with borrowing of funds. May include:

  • Interest expense calculated using effective interest method (see IAS 39).
  • Finance charges in respect of finance leases (see IAS 17).
  • Exchange differences arising from foreign currency borrowings to extent that regarded as adjustment to interest costs (based on accounting policy).

Does NOT deal with: actual/imputed cost of equity, including preferred shares classified as equity. NOT required to apply to: borrowing costs directly attributable to the acquisition, construction/ production of:

  • A qualifying asset measured at FV (e.g., biological asset (within scope of IAS 41)).
  • Inventories manufactured/otherwise produced, in large quantities on a repetitive basis.

IAS 23 Borrowing Costs

Contact us

Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.