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UK GAAP pp 755-794 | Cite as

Capitalisation of borrowing costs

  • Mike Davies
  • Ron Paterson
  • Allister Wilson

Abstract

A point of contention in determining the initial measurement of a tangible fixed asset is whether borrowing costs incurred during the period of construction of an asset should or should not be capitalised. This issue was referred to in company law for the first time in 1981, with the Companies Act 1981 permitting the inclusion of interest in the production cost of an asset.1

Keywords

Equity Capital Investing Company Capitalisation Rate Financing Cost Investment Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Ernst & Young 1997

Authors and Affiliations

  • Mike Davies
  • Ron Paterson
  • Allister Wilson

There are no affiliations available

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