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GASB issues guidance on certain interest costs

  • GASB document Image

Jun 22, 2018

The GASB has issued Statement No. 89, “Accounting for Interest Cost Incurred Before the End of a Construction Period.”

State­ment 89 requires that interest costs “incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus.” Such costs therefore “will not be included in the historical cost of a capital asset reported in a business-type activity or enterprise fund.”

State­ment 89 is ef­fec­tive for re­port­ing periods be­gin­ning after December 15, 2019. Early ap­pli­ca­tion is en­cour­aged.

For more in­for­ma­tion, see the press release and State­ment 89 on the GASB’s Web site.

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