Question: According to SFAS No. 34, interest on self- constructed assets should be capitalized. Team Debate: Team 1: Present arguments in favor of capitalizing interest. Tie

According to SFAS No. 34, interest on self- constructed assets should be capitalized.

Team Debate:

Team 1: Present arguments in favor of capitalizing interest. Tie your arguments to the concepts and definitions found in the conceptual framework.

Team 2: Criticize the provisions of SFAS No. 34 . Present arguments against capitalizing interest. Tie your arguments to the concepts and definitions found in the conceptual framework. (Finance theory would say that interest is a return to the capital provider, the lender. Finance theory might assist you in your argument.)

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Team 1 Argue for the capitalization of interest The FASB considers interest incurred during construction of the asset as an element of historical cost Historical cost is the amount of cash or its equi... View full answer

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