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Contents
25.1.1 Extract from FRS102: Section 25.1.
25.1.2.2 Borrowing costs defined.
25.1.2.2.1 Interest charged on the effective interest method.
25.1.2.2.1.1 Examples of interest considered for capitalisation.
25.1.2.2.1.2 Examples of costs not eligible for capitalisation.
25.1.2.2.2 Finance lease interest.
25.1.2.2.3 Exchange differences.
25.2.1 Extract from FRS102: Section 25.2 – 25.2C.
25.2.2.1 Definition of qualifying asset.
25.2.2.2 Accounting policy choice and qualifying borrowing costs.
25.2.2.3 Substantial period of time.
25.2.2.4 Class of qualifying assets- consistency.
25.2.2.5 Borrowing costs less any investment income generated.
25.3 Commencement and cessation of capitalisation.
25.3.1Extract from FRS102: Section 25.2D.
25.3.2.1 Commencement of capitalisation.
25.3.2.2. Suspension of capitalisation.
25.3.2.3 Cessation of capitalisation.
25.4.1 Extract from FRS102: Section 25.3 – 25.3A.
25.4.2.2.1 Property plant and equipment.
25.4.2.2.4 Trade and other payables.
25.4.2.3 Critical Accounting Judgements and Estimates.
25.4.2.4. Notes to the financial statements.
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Examples
Example 1: Borrowing costs net of investment income.
Example 2: Calculation of capitalisation rate.
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