On 17 May 2012, the International Accounting Standards Board issued Annual Improvements 2009–2011 Cycle. The amendments have an effective date of 1 January 2013, but earlier adoption is permitted.
The borrowing costs amendments address concerns that were raised by first-time adopters about the transitional provisions for borrowing costs on:
- whether borrowing costs capitalised in accordance with previous GAAP should be retained, restated or eliminated in the opening statement of financial position; and
- the accounting, after the date of transition, for borrowing costs that relate to such qualifying assets when these qualifying assets are under construction at the date of transition.
