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Basic Question 5 of 12
The amount of interest that may be capitalized under GAAP is ______.
B. the lower of actual interest and avoidable interest
C. imputed interest
A. actual interest
B. the lower of actual interest and avoidable interest
C. imputed interest
User Contributed Comments 3
| User | Comment |
|---|---|
| kalps | The amount of ineterest capitalised under GAAp is lower of actual interest or avoidable intresedt. |
| viannie | avoidable interest = weight average interests x the amount involved in the construction of the assets |
| quanttrader | under gaap - can capitalize the lower of avoidable or actual interest |
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Learning Outcome Statements
describe general principles of expense recognition, specific expense recognition applications, implications of expense recognition choices for financial analysis and contrast costs that are capitalized versus those that are expensed in the period in which they are incurred
CFA® 2024 Level I Curriculum, Volume 2, Module 2.