The IFRS Interpretations Committee (Committee) recently published an agenda decisionon ‘over time transfer of a constructed good’. The agenda decision responds to a question received about the application of IAS 23 Borrowing Costs to the construction of a multi-unit housing development. The agenda decision explains why the Committee concluded that, in the specific fact pattern discussed, IFRS Standards provide an adequate basis to determine whether to capitalise borrowing costs.
In this webcast, two members of the technical staff of the International Accounting Standards Board (Board), Jawaid Dossani and Nicolette Lange, explain the conclusions reached by the Committee. They discuss the application of IAS 23 and its interaction with IFRS 15 Revenue from Contracts with Customers in the context of the agenda decision.
The Committee works with the Board in supporting the application of IFRS Standards. The Committee responds to questions from stakeholders about the application of IFRS Standards by publishing agenda decisions with explanatory material or, if required, by developing interpretations (called IFRIC Interpretations) or amendments to the Standards.