|
U.S. GAAP Codification of Accounting Standards |
| U.S. GAAP Codification | Accounting Standards, ASC |
| U.S. GAAP Codification, Accounting Standards ASC, |
| U.S. GAAP by Topic, Accounting by Topic |
|
U.S. GAAP Accounting Standards |
| Codification Topic 835-20 Capitalization of Interest Capitalization of interest SFAS 34, October 1979 "Capitalization of Interest" Qualifying assets for interest capitalization 1. Assets that are constructed or produced --> for the entity's own use 2. Assets that are constructed or produced --> for sale or lease as discrete projects Interest cost is not capitalized --> for inventories Amount of interest to be capitalized 1. Amount to be capitalized --> average accumulated expenditures x capitalization rate 2. Total amount of interest cost capitalized --> cannot exceed the total interest cost incurred Capitalization rate 1. Specific borrowings for the construction --> interest rate for specific borrowings 2. For the average accumulated expenditures over the specific borrowings --> weighted average interest rate of other borrowings Capitalization period 1. Capitalization begins when (1), (2), (3) occur (1) Interest cost is incurred (2) Construction activities are in progress (3) Expenditures are incurred 2. Capitalization ends when (4) and (5) occur (4) The asset is substantially complete (5) The asset is ready for its intended use |
|
Codification Topic 835 Interest |
|
Subtopics of Codification Topic 835 835-10 Overall 835-20 Capitalization of interest 835-30 Imputation of interest |
|
Accounting Terms of Codification Topic 835-10 |
|
Accounting Terms of Codification Topic 835-20 Activities Capitalization rate Expenditures Intended use Interest cost |
|
Accounting Terms of Codification Topic 835-30 Discount Imputed interest rate Interest method Premium |
| U.S. GAAP by Topic |
| Accounting Topics |
| Copyright © AccountingInfo.comTM Legal Disclaimer |