Interest Capitalization

Interest Capitalization

When a company constructs their own assets, U.S. GAAP allows for those companies to capitalize a portion of the interest incurred during construction. Watch below to see how a company determines how much interest should be capitalized vs. expensed.


Watch

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Interest Capitalization Google Spreadsheet
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Practice

Let’s see if you can apply what you’ve learned! Try the practice problem below.

Interest Capitalization #1


Test Your Understanding


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