The IASB and FASB have worked together to improve standards on interest capitalization. The IASB revised its guidance in IAS 23 to align more closely with the U.S. standard, FASB Statement no. 34. The new standard requires capitalizing borrowing costs related to assets that take a long time to prepare for use or sale. This includes interest, financing fees, and charges. The goal is to capitalize avoidable borrowing costs incurred during asset acquisition, construction, or production. The new standard applies to assets like inventories, equipment, and intangibles, but not to inventories produced in large quantities. Borrowing cost capitalization starts when the entity incurs expenses for the asset, borrowing costs, and activities to prepare the asset for use or sale.