The International Accounting Standards Board published an
ED of proposed amendments to International Accounting Standard (IAS)
23, Borrowing Costs (
www.iasb.org ). The proposal requires entities to capitalize
borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset as part of its cost,
rather than immediately recognizing borrowing costs as an expense.
This change would align IAS 23 with the provisions of the Financial
Accounting Standards Board’s Statement no. 34, Capitalization of
Interest Cost ( www.fasb.org/st/summary/stsum34.shtml
) and thus improve comparability between U.S. GAAP and
international standards. Comments are due September 29, 2006.
The International Federation of Accountants’ Professional
Accountants in Business Committee released Business Planning
Guide: Practical Application for SMEs, an information paper
that shows managers in small and midsize entities—and the accounting
firms that serve them—how to manage risk and develop business plans to
help measure performance and obtain external funding. The paper is
available free of charge at
www.ifac.org/store .
