CHAPTER 8: LIABILITIES
Supplies and Consumables Supplies and consumables (including other office costs) are to be recognized as expenses when incurred. Impairment of receivables Refer to Chapter 12. Operating Leases Operating lease payments are to be accounted for in accordance with IPSAS 13. Operating lease payments are to be recognized as an expense in the statement of financial performance on a straight-line basis over the lease term, where this is representative of the pattern of benefits to be derived from the leased property. Depreciation All depreciable property, plant and equipment (including revalued assets where appropriate) is to be depreciated. The depreciation charge for each period is to be recognized as an expense unless it is included in the carrying amount of another asset. Assets are to be depreciated in accordance with the methods and rates shown below: [Each reporting entity will identify the methods and rates for categories of assets⎯these may vary between entities and jurisdictions depending upon the type of use, extent of maintenance, and climatic conditions.] Leasehold improvements are to be depreciated either over the unexpired period of the lease or the useful lives of the improvements, whichever is the shorter. Borrowing costs Borrowing costs include: [Each reporting entity will list relevant types of borrowing costs, for example, interest on bank overdrafts and borrowings]. Borrowing costs meeting the criteria for capitalization as part of the cost of a qualifying asset are to be capitalized in accordance with IPSAS 5, Borrowing Costs. All other borrowing costs are to be recognized as an expense in the reporting period in which they are incurred. Impairment of Assets Refer to Chapter 12.
181