Borrowing Cost
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Enables you to process Borrowing Costs used to acquire, build or produce a qualifying asset.
This new option is aligned with the Accounting Pronouncement CPC - 20 in compliance with the Law 11,638 of December 2007 concerning the process to converge Brazilian accounting rules to international ones, available at 844f63d8-aa40-4820-a52a-518c4e486816.
To make the operation classification and accounting easier, the property classification E - Borrowing Cost has been created.
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Creation of property classification E - Borrowing Cost |
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Wizard of Borrowing Cost Capitalization processing |
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Borrowing Cost Capitalization Statement |
80e53d9f-818e-4a9f-8802-d0b5ca0fb10e Important:
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Borrowing cost - Interest and other costs incurred by an entity in relation to the resource loan. |
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Qualifying asset - An asset that necessarily takes a substantial period of time to get ready for its intended use or sale. |
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The capitalization cost is calculated as follows: |
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Capitalization Rate = ( a + b - c ) / d . |
Where:
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a = Sum of period interest |
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b = Sum of transaction cost amortization |
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c = Sum of investment gain |
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d = Balance of financing contracts |
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Capitalization value is the acquisition value of qualifying asset multiplied by the capitalization rate. |
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See Also