A company borrows money at 10 per cent interest in order to finance the building of a
Question:
A company borrows money at 10 per cent interest in order to finance the building of a new factory. Suggest arguments for and against the proposition that the interest costs should be capitalized and regarded as part of the ‘cost’ of the factory. Which set of arguments do you prefer?
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Arguments for capitalizing interest costs as part of the cost of the factory 1 Matching Principle Capitalizing interest aligns with the matching princ...View the full answer
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Related Book For 
Financial Accounting An International Introduction
ISBN: 9781292102993
6th Edition
Authors: David Alexander, Christopher Nobe
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