• Register
Search IFRS Questions / Answers



Welcome to IFRSanswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login few seconds

Get IFRSanswer App

Forensic Accounting

how do i treat borrowed cost used for leasehold improvement


Should the cost of fund on leasehold improvement be capitalised

asked May 18 in IFRS 16 - Leases by biggy

1 Answer

0 votes
this is a very interesting question and I must say that there was a lot of discussion around capitalizing borrowing cost on leasehold improvement.
IAS 23 defines qualifying asset as an asset that takes a substantial period of time to get ready for its intended use or sale.
However, if your asset would be put out of operation during the modernization and modernization would change its use (purpose, functionality, capacity, whatever), then these costs could be capitalized as the asset would be qualifying.
Hope this helps!
answered May 19 by veshmalahotra Level 4 Member (9,780 points)


...