How does the treatment of borrowing costs under U.S. GAAP differ from IFRS? Multiple Choice U.S. GAAP has no guidance for accounting treatment related to borrowing costs. U.S. GAAP does not allow netting ofiterest income against interest cost. U.S. GAAP specifically includes foreign exchange gains and losses on foreign currency borrowings, The definition of borrowing costs under U.S. GAAP is broader in scope than the definition of interest cost under IAS 23