毕业论文外文翻译--借款费用的核算(适用于毕业论文外文翻译+中英文对照)

Accounting for borrowing costs

The source: Accounting for borrowing costs.

The publisher: Journal of Money，Credit and Banking. The author: James R. Booth、Lena Chua Booth. From:The page 15.

In accordance with the provisions of the latest international accounting standards, first to understand the criteria for borrowing costs is prescribed . This revised International Accounting Standard supersedes IAS 23, Capitalisation of Borrowing Costs, approved by the Board in March 1984 . The revised Standard became effective for financial statements covering periods beginning on or after 1 January 1995 .

Explain the standard in the following aspects :

Objective

The objective of this Standard is to prescribe the accounting treatment for borrowing costs . This Standard generally requires the immediate expensing of borrowing costs . However, the Standard permits , as an allowed alternative treatment , the capitalisation of borrowing costs that are directly attributable to the acquisition , construction or production of a qualifying asset .

Scope

1. This Standard should be applied in accounting for borrowing costs .

2. This Standard supersedes IAS 23 , Capitalisation of Borrowing Costs , approved in 1983.

3. This Standard does not deal with the actual or imputed cost of equity , including preferred capital not classified as a liability .

Definitions

The following terms are used in this Standard with the meanings specified :Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds .

A qualifying asset is an asset that necessarily takes a substantial period of time to

get ready for its intended use or sale .

Borrowing costs may include :

(a) interest on bank overdrafts and short-term and long-term borrowings ; (b) amortisation of discounts or premiums relating to borrowings ;

(c) amortisation of ancillary costs incurred in connection with the arrangement of borrowings ;

(d) finance charges in respect of finance leases recognised in accordance with IAS 17, Leases ; and

(e) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs .

Examples of qualifying assets are inventories that require a substantial period of time to bring them to a saleable condition , manufacturing plants, power generation facilities and investment properties. Other investments , and those inventories that are routinely manufactured or otherwise produced in large quantities on a repetitive basis over a short period of time , are not qualifying assets . Assets that are ready for their intended use or sale when acquired also are not qualifying assets .

Borrowing Costs - Benchmark Treatment Recognition

Borrowing costs should be recognised as an expense in the period in which they are incurred .Under the benchmark treatment borrowing costs are recognised as an expense in the period in which they are incurred regardless of how the borrowings are applied .

Disclosure

The financial statements should disclose the accounting policy adopted for borrowing costs .

Borrowing Costs - Allowed Alternative Treatment Recognition

Borrowing costs should be recognised as an expense in the period in which they

are incurred ,except to the extent that they are capitalised in accordance with paragraph 11. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset should be capitalised as part of the cost of that asset . The amount of borrowing costs eligible for capitalisation should be determined in accordance with this Standard .

Under the allowed alternative treatment , borrowing costs that are directly attributable to the acquisition , construction or production of an asset are included in the cost of that asset . Such borrowing costs are capitalised as part of the cost of the asset when it is probable that they will result in future economic benefits to the enterprise and the costs can be measured reliably . Other borrowing costs are recognised as an expense in the period in which they are incurred .

Borrowing Costs Eligible for Capitalisation

The borrowing costs that are directly attributable to the acquisition , construction or production of a qualifying asset are those borrowing costs that would have been avoided if the expenditure on the qualifying asset had not been made. When an enterprise borrows funds specifically for the purpose of obtaining a particular qualifying asset, the borrowing costs that directly relate to that qualifying asset can be readily identified .

It may be difficult to identify a direct relationship between particular borrowings and a qualifying asset and to determine the borrowings that could otherwise have been avoided . Such a difficulty occurs , for example , when the financing activity of an enterprise is co-ordinated centrally .Difficulties also arise when a group uses a range of debt instruments to borrow funds at varying rates of interest , and lends those funds on various bases to other enterprises in the group . Other complications arise through the use of loans denominated in or linked to foreign currencies , when the group operates in highly inflationary economies, and from fluctuations in exchange rates . As a result , the determination of the amount of borrowing costs that are directly attributable to the acquisition of a qualifying asset is difficult and the exercise of judgement is required .

To the extent that funds are borrowed specifically for the purpose of obtaining a qualifying asset ,the amount of borrowing costs eligible for capitalisation on that asset should be determined as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

The financing arrangements for a qualifying asset may result in an enterprise obtaining borrowed funds and incurring associated borrowing costs before some or all of the funds are used for expenditures on the qualifying asset. In such circumstances, the funds are often temporarily invested pending their expenditure on the qualifying asset. In determining the amount of borrowing costs eligible for capitalisation during a period, any investment income earned on such funds is deducted from the borrowing costs incurred.

To the extent that funds are borrowed generally and used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalisation should be determined by applying a capitalisation rate to the expenditures on that asset. The capitalisation rate should be the weighted average of the borrowing costs applicable to the borrowings of the enterprise that are outstanding during the period, other than borrowings made specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalised during a period should not exceed the amount of borrowing costs incurred during that period.

In some circumstances, it is appropriate to include all borrowings of the parent and its subsidiaries when computing a weighted average of the borrowing costs; in other circumstances, it is appropriate for each subsidiary to use a weighted average of the borrowing costs applicable to its own borrowings.

Excess of the Carrying Amount of the Qualifying Asset over Recoverable Amount

When the carrying amount or the expected ultimate cost of the qualifying asset exceeds its recoverable amount or net realisable value, the carrying amount is written down or written off in accordance with the requirements of other International