in IAS 23 - Borrowing Costs by
Our company recently purchased some machinery for for around $1.3M. We purchased this by paying the supplier by cheque. However due to this transaction we have incurred $5623 as overdraft interest. The current account went overdrawn purely because of this transaction. Can I capitalize this amount to the cost of the asset?

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by Level 2 Member (3.6k points)
Yes. If you can directly attribute your overdraft interest to the purchase of your asset then you can capitalize this interest as per IAS 23

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