Special IFRS Topics

Five standards that come up less often than leases or revenue but reliably appear in exams — each with a rule you apply the same way every time. IAS 23 capitalises borrowing costs into an asset under construction, but only while work is actually under way, and net of what idle borrowed funds earn. IAS 20 releases a government grant into profit in step with the costs it pays for, rather than all at once when the cash arrives. IAS 21 separates foreign-currency items that move with the exchange rate — monetary items such as payables — from those that stay at the rate on the day they were recorded, such as inventory. IAS 10 asks one question about everything that happens between year end and the date the accounts are signed: did it reveal a condition that already existed? And IAS 7 explains why acquiring assets for shares or a note never appears as a cash flow at all. An optional final section shows how US GAAP capitalises interest differently.