Answer
Three major items should be divulged in the notes: The total amount of the interest cost, the portion of the interest cost that was capitalized and the portion of the interest cost that was charged to the company’s expenses.
The accounting for interest revenue derived from the temporal investment of borrowed funds should be capitalized under the respective qualifying assets since the short-lived investments have no relationship with the interest incurred when acquiring assets.
Work Step by Step
Three major items should be divulged in the notes: The total amount of the interest cost, the portion of the interest cost that was capitalized and the portion of the interest cost that was charged to the company’s expenses.
The accounting for interest revenue derived from the temporal investment of borrowed funds should be capitalized under the respective qualifying assets since the short-lived investments have no relationship with the interest incurred when acquiring assets.
