Author(s)

Weiwei Guo

Corresponding Author

Weiwei Guo

Abstract

The new loan expenses standard allowa the capitalization of borrowing costs in the range of assets, with the calculation methods being changed, resulting in a new space for earnings management, affecting the quality of accounting information disclosure. Based on the background of the loan expenses rule reform, the paper summaries the domestic and foreign literature on the borrowing costs of the new standards, makes a comparative analysis on the capitalization of borrowing costs related to economic consequences, and puts forward a series of targeted measures.

Keywords

Borrowing cost, Capitalization, Expensing.