Unformatted text preview: expenses related to the fixed asset, including shipment, delivery, interest, and other costs related to preparing for the ownership of the fixed asset. Interest is included in the cost of a fixed asset, and should be, because GAAP requires that when the fixed asset is not being used, it accrues interest. If the asset is being prepared or modified to the company's specifications, the asset is not yet in use but is owned by the company. The amount of interest is added to the cost of the asset, even though it has yet to generate revenue from its intended use....
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- Spring '08
- Fixed Assets, Generally Accepted Accounting Principles