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