borrowing costs

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Costs that are incurred when an organization borrows money. Interest payments are an example of borrowing costs. Borrowing costs may be recognized as an expense when incurred or capitalized as part of the cost of an asset. For listed companies in the EU, the treatment of borrowing costs is now governed by International Accounting Standard 23, Capitalization of Borrowing Costs.

Subjects: Financial Institutions and Services — Accounting.

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