Borrowing Costs — ASC 835-20 vs IAS 23

ASC 835-20 (US GAAP) and IAS 23 (IFRS) are converged in principle: capitalize borrowing costs directly attributable to acquiring, constructing, or producing a qualifying asset; expense the rest.

Area	US GAAP (ASC 835-20)	IFRS (IAS 23)
Core rule	Capitalize on qualifying assets	Same
Investment income on borrowed funds	Generally not offset against capitalized interest	Offset against eligible borrowing costs
Scope of eligible costs	Minor differences	Minor differences

• SAP implementation: interest during construction capitalized to Assets under Construction (AuC) / investment management, settling to SAP Asset Accounting (FI-AA).

An educational reference and original synthesis — not investment advice, and not a substitute for the standard. Consult ASC 835-20 / IAS 23 directly.