ChartAcc

IAS 23 not applicable to:

1. Cost of equity:
   - actual or imputed (including preferred capital not classified as a liability)
2. A qualifying asset:
   - measured at fair value (e.g. a biological asset)
3. Inventories:
   - that are manufactured, or otherwise produced,
   - in large quantities
   - on a repetitive basis
   

RULES OF CAPITALISATION:

• Conditions:
  - it is probable
  - that costs incurred will result in future economic benefits to the entity
  - and the costs can be measured reliably
  
• Commencement from date when following all conditions are met:
  - expenditures is incurred for the asset,
  - it incurres Borrowing Cost; and
  - it undertakes activities that are necessary to prepare the asset for its intended use or sale.
  
• Suspension of capitalisation:
  - when active development of a QA* is suspended .
  - Suspension of active development excludes:
  - - - carying out of substantial technical and administrative work
  - - - temporary delay that is a necessary part of the development of QA*
  
• Cessation of capitalisation:
  - substantially all the activities of development of QA* are complete
  - if development of QA* is in parts, then each part is treated as QA*

DISCLOSURE:

1. The amount of borrowing costs capitalised during the period; and
2. The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation.