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GLOBAL INSIGHTWORLDNEWSUNITED KINGDOMUNITED STATESSRI LANKAAUSTRALIAAustraliaThe Australian Accounting Standards Board (AASB) hasissued a revised AASB 123 Borrowing Costs. The revisedStandard has been adopted as a result of the IASB’srevisions to IAS 23 Borrowing Costs in March of this year.The Standard is applicable to reporting periods beginningon or after January 1, 2009, with early adoption permitted.Professor David Boymal, Chairman of the AASB,commented that: “The major change to the Standardinvolves the removal of the option of recognisingborrowing costs immediately as an expense, to the extentthat they are directly attributable to the acquisition,construction or production of a qualifying asset. Theremoval of the option to expense borrowing costsattributable to qualifying assets is aimed at converging, inthe short-term, IASB Standards and US generally acceptedaccounting principles.”The Revised Standard also has a narrowed scope andits requirements do not apply to borrowing costs directlyattributable to the acquisition, construction or productionof:• a qualifying asset measured at fair value, for examplea biological asset; or• inventories that are manufactured or otherwiseproduced, in large quantities on a repetitive basis.AASB 123 applies to each entity that is required toprepare financial reports in accordance with Part 2M.3 ofthe Corporations Act 2001 and is a reporting entity, generalpurpose financial reports of each reporting entity andfinancial reports that are, or are held out to be, generalpurpose financial reports.Amending Standard AASB 2007-6 has also beenreleased which makes amendments to a number ofStandards that are a consequence of the changes made toAASB 123.(Source: www.accountingeducation.com)Sri LankaThe Board of the Institute of Chartered Accountants of SriLanka (ICASL) has approved a policy that Sri LankanFinancial Reporting Standards will be fully compliant withInternational Financial Reporting Standards by 2011,meaning that a company that asserts compliance with SriLankan standards could also assert compliance with IFRSs.56 | The Malaysian Accountant | June/August 2007 www.micpa.com.my