A foreign company did not capitalize any interest in the current or past years, although such capitalization is required under U S GAAP Why does an adjustment to reconcile this item to U S GAAP affect assets, expenses, and beginning retained earnings ...

Interest can be either capitalized as part of the cost of a depreciable a ...

A foreign company did not capitalize any interest in the current or past years, although such capitalization

Question:

A foreign company did not capitalize any interest in the current or past years, although such capitalization is required under U.S. . Why does an adjustment to reconcile this item to U.S. affect assets, expenses, and beginning retained earnings?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...