Codification Research Case
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 FASB Codification using the below link,user id and pass word
(Links to an external site.)http://aaahq.org/Research/FASB-GARS (Links to an external site.)
Username – AAA53479
Password – 6qDXX9y
to log in and prepare responses to the following. Provide Codification references for your responses.
(1) Is there a limit to the amount of interest that may be capitalized in a period?
(2) If interest capitalization is allowed, what disclosures are required?
PLEASE PROVIDE 200 WORDS WITH REFERENCES
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