Division Consensus

United Kingdom Repealed

1. 3Where an enterprise adopts the allowed alternative treatment, that treatment should be applied consistently to all borrowing costs that are directly attributable to the acquisition, construction or production of all qualifying assets of the enterprise. If all the conditions laid down in IAS 23.11 are met, an enterprise should continue to capitalise such borrowing costs even if the carrying amount of the asset exceeds its recoverable amount. However, IAS 23.19 explains that the carrying amount of the asset should be written down to recognise impairment losses in such cases.