Yes. The G100 supports the capitalisation of borrowing costs as part of the cost of a qualifying asset.

No.
 

The Exposure Draft proposes that entities should apply the amendments to borrowing costs for which the commencement date for capitalisation is on or after the effective date. However, an entity would be permitted to designate any date before the effective date and to apply the proposed amendments to borrowing costs relating to all qualifying assets for which the commencement date for capitalisation is on or after that date.

Do you agree with the proposal? If not, why? What alternative would you propose and why?

Yes. While the G100 supports proposals to permit an entity to select an earlier date to adopt the amended requirements. However, where an entity avails itself of application of the requirements from an earlier date than the effective date this will mean that items that have previously been expensed will be reinstated and included in the carrying amount of the qualifying asset. We believe that the Basis for Conclusions should discuss the acceptable treatment of these reinstatements under IAS 8 ‘Accounting Policies, Changes in Estimates and Errors’.