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8 Cards in this Set
- Front
- Back
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What is the accusation of PPE valued at |
Historical Cost and Reliable |
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What is land held for speculation classified as |
Investment in land |
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What is land available for sale classified as |
Inventory |
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Interest expense during construction is a controversy why? |
GAAPrequires capitalization of actual interest incurred during the period ofconstruction (w/modification), but “COST OF EQUITY” FINANCING ARE NOT CAPITALIZED AT ALL (INCONSITENT). |
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Qualifying Assets |
Assets under contrition for the company such as buildings,plants, large machinery, Assets intend for sale such as ships,real estate developments |
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When do you capitalize |
Firstexpenditures for asset has been made Activities forreadying the assetare in progress Interestcosts are being incurred by the company. It ends when construction is over |
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Actual Interest |
The WAAE is than the amount of the original amount |
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Avoidable Interest |
The WAAE exceeds the amount of the original amount WAAE Original loan * Original interest Exceeded Amount * Weighted interest rate Weighted Interest rate = Total interest from other debt / total principle from other debt |
