The comparison to IFRS slide for inventory, states "interest costs under IFRS are always attributable, whereas under ASPE they are not". Does this mean that interest under IFRS is always capitalized, whereas under ASPE it is not.
However on an earlier slide, borrowing costs are capitalized.
Can you please clarify the difference in interest costs for inventory between IFRS and ASPE.
Thank you!
Hi Jennifer,
Based on prior notes and my understanding, the entity may expense or capitalized interests (borrowing costs) under ASPE if it so choose under its accounting policy (and this policy and the amount that is capitalized has to be disclosed in the notes to F/S) but under IFRS, the entity has no option but required to capitalized it but I am not sure about the disclosure requirement for IFRS on this.
Let me know if others agree or wants to add to this.
Thank you,
Lawrence
