136a Case3 S10

136a Case3 S10 - Codification Research System to prepare...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ. 136A Case #3 (Spring 2010) Your client is in the planning phase for a major plant expansion, which will involve the construction of a new warehouse. The assistant controller does not believe that interest cost can be included in the cost of the warehouse, because it is a financing expense. Others on the planning team believe that some interest cost can be included in the cost of the warehouse, but no one could identify the specific authoritative guidance for this issue. Your supervisor asks you to research this issue. Instructions Access the FASB Codification at http://www.asc.fasb.org/home to conduct research using the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Codification Research System to prepare responses to the following items. User ID: AAA52348 Password: sucs548 Provide Codification references for your responses. a. Is it permissible to capitalize interest into the cost of assets? Provide authoritative support for your answer. b. What are the objectives for capitalizing interest? c. Discuss which assets qualify for interest capitalization. d. Is there a limit to the amount of interest that may be capitalized in a period? e. If interest capitalization is allowed, what disclosures are required?...
View Full Document

Ask a homework question - tutors are online