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.)