Abstract
Abstract This research aims to investigate the International Accounting Standard the Twenty three (23) of Borrowing cost, according to the foundation of accounting treatment of the Borrowing cost to see the effect of changing the accounting treatment for borrowing costs to the informational content of financial statements. The study sought the impact of the transformation of the company to follow the treatment fundamental accounting benefits as and revenue expenditure, to the allowed alternative treatment as a capital expenditure. The results of the research revealed that the policy of capitalization, leading to a clear improvement in all financial statements during the construction period of the asset self-qualified, an increase number net profit and retained earnings and equity and total assets compared to an expense policy that interest revenue expenditure, backs and led to substantial differences with statistical significance between the financial statements resulting from the implementation of the policy revenue expenditure as an expense on the policy of holding interest allowance capitalist, for the benefit of that interest allowance capitalist, in turn, affect the decision-maker. The research recommended that the implementation of the policy of the company capitalized cost of borrowing, because of their good results to show financial statements to better and more objective, and the company in case of the policy of capitalization of borrowing costs, the necessity to establish clear conditions for the adoption of this policy, and full disclosure of all the details of the policy of capitalization. .
