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.
Access FASB Codification using the below link,user id and pass word
Username – AAA53479
Password – 6qDXX9y
to log in and prepare responses to the following. Provide Codification references for your responses.
(1) Discuss which assets qualify for interest capitalization and why.
PLEASE PROVIDE 200 WORDS WITH REFERENCES