The provided reference terms discuss various aspects of accounting principles related to borrowing costs, lease accounting, and corporate governance. Here's a summary:
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Borrowing Costs (Corporate Accounting Standard 17, 2006): This standard outlines how to recognize, measure, and disclose borrowing costs. It states that during the capitalization period, the capitalized interest should not exceed the actual interest expense incurred in that period. If there are discounts or premiums on borrowings, they should be amortized using the effective interest method, adjusting the interest amount each period.
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Lease Accounting (Corporate Accounting Standard 21, 2018): This standard deals with how to account for leases, both for lessors and lessees. For lessors, interest income should be recognized using a fixed periodic interest rate. For lessees, interest expenses on lease liabilities should be calculated using a fixed periodic rate and can be capitalized or expensed based on other accounting standards.
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Corporate Governance: Although not directly addressed in the terms, corporate governance refers to the system of rules, practices, and processes that guide and control a company, ensuring fair treatment of stakeholders, transparency, and accountability.
The examples and case studies provided illustrate how these principles are applied in practice, such as calculating interest expenses for leases, capitalizing borrowing costs, and managing financial obligations.
If you have a specific question or scenario you'd like me to analyze based on these principles, please provide more details.
