Exposure draft and comment letters

The proposals mark another step towards convergence of international and national standards by continuing the IASB’s work in its joint short-term convergence project with the US Financial Accounting Standards Board (FASB). The objective of the project is to reduce differences between the IASB’s International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP).

The Exposure Draft results from the IASB’s comparison of IAS 23 Borrowing Costs with the US standard SFAS 34 Capitalization of Interest Cost. The proposed amendments to IAS 23 would remove a major difference between the accounting treatments for borrowing costs under the two standards