Oil & Gas
Development Borrowing Cost Capitalized (IAS 23)
Capitalizing interest on a project finance facility specifically funding a qualifying development asset.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Development Assets — AUC (Borrowing Cost) | Asset (+) | 12,000,000.00 | - |
| Interest Expense (Capitalized — IAS 23) | Expense (-) | - | 12,000,000.00 |
💡 Accountant's Note
Under IAS 23, borrowing costs directly attributable to a qualifying development asset are capitalized. For large offshore projects funded by project finance, this can be a substantial addition to the asset cost.
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