The Governmental Accounting Standards Board is circulating a pair of exposure drafts proposing accounting and financial reporting guidance pertaining to the capitalization of interest cost along with a proposed Implementation Guide discussing a variety of topics.
The exposure draft on interest cost capitalization,
For financial statements prepared using the economic resources measurement focus, interest cost incurred during a period of construction would be recognized as an expense in the period when the cost’s incurred. The interest cost wouldn’t be capitalized as part of the historical cost of a capital asset.
For financial statements prepared using the current financial resources measurement focus, interest incurred during construction would continue to be recognized as an expenditure on a basis consistent with governmental fund accounting principles.
The proposed
Both exposure drafts can be found on