Borrowing costs template

An Excel workbook that calculates the borrowing costs to capitalise on up to five qualifying assets for one financial year under IAS 23. It handles specific loans, the capitalisation rate on general borrowings, and commencement, suspension and cessation day by day, then gives the journal and the IAS 23.26 disclosure figures.

What it does

• Records up to three specific borrowings and deducts investment income earned on unspent funds (IAS 23.12–23.13)

• Calculates the capitalisation rate on up to six general borrowings, adding specific loans to the pool once their asset is complete (IAS 23.14)

• Applies commencement, one suspension period and cessation for each asset by day across twelve months

• Applies the rate to monthly expenditure funded from general borrowings (mid-month convention), net of grants and progress payments

• Limits general borrowing costs capitalised to those incurred and splits the costs between capitalised and expensed, by asset and by source

• Produces the journal, the IAS 23.26 figures (amount capitalised and capitalisation rate) and draft policy and note wording

• Runs 13 checks, with a status line on every tab, plus a completed worked example

What you get

• One Excel workbook (.xlsx) with an Instructions tab, the blank template and a worked example for a fictitious hotel group with a specific loan for an extension (including a suspension), a fit-out funded from general borrowings and two assets with nothing to capitalise.

• Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.

• Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.

Scope

One entity and one currency for one financial year. Outside scope: exchange differences treated as borrowing costs, group borrowing pools, hyperinflation, repayment of specific loans during the year, more than one drawdown or suspension period per row, and impairment of the asset. For entities applying full IFRS Accounting Standards; not for the IFRS for SMEs Standard or FRS 102.

Designed for smaller entities applying full IFRS Accounting Standards. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.