On 29 March 2007, the International Accounting Standards Board reissued IAS 23 Borrowing Costs. The revised standard has an effective date of 1 January 2009.
The project was part of the Short-term Convergence project with the US Financial Accounting Standards Board (FASB). The purpose was to reduce differences between IFRSs and US generally accepted accounting principles (US GAAP) that can be resolved in a relatively short time and can be addressed outside major projects.
The objective of this short-term convergence project was to amend IAS 23 Borrowing Costs by removing the main difference between US GAAP and IAS 23. This was done by requiring the capitalisation of borrowing costs, to the extent they are directly attributable to the acquisition, production or construction of a qualifying asset.