News
IPSASB Issues Exposure Draft to Clarify Guidance on Borrowing Costs
03-Dec-2020
Stakeholder comments on Exposure Draft 74 sought by March 1, 2021
NEW YORK - The International Public Sector Accounting Standards Board (IPSASB) has released for comment Exposure Draft (ED) 74, IPSAS 5, Borrowing Costs – Non-Authoritative Guidance. The ED proposes the addition of non-authoritative guidance to IPSAS 5.
The proposed non-authoritative guidance would add implementation guidance and illustrative examples to IPSAS 5. The new material proposed in ED 74 would clarify how the existing principles for when borrowing costs can be capitalized should be applied in various regularly encountered public sector contexts. No amendments are proposed to the authoritative material in IPSAS 5.
“We undertook this project to address the practical challenges constituents identified in determining which borrowing costs can be capitalized and when,” said IPSASB Chair Ian Carruthers. “This is an important step in enhancing comparability between those public sector entities that capitalize borrowing costs.”
How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by March 1, 2021.
The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.
Source: ifac.org