Using Accounting Standards Board cite and answer question below.

You are an auditor of Virox, a computer software company. Virox is considering constructing a building that it plans to use for its new head quarter office. You are asked to provide guidance on whether this asset qualifies for capitalization of interest. Provide the citations for all relevant topics/sections from professional standards that guide her on this issue. Be specific as to which topics/sections refer to what issue, e.g. whether this company is allowed to do this, and if so what the management should be careful about, etc. Without going into specific details of the actual method, cite topics/sections that give guidance on how, if allowed, they can capitalize interest costs related to this asset.

Answer rating: 100% (QA)

The historical cost of acquiring an asset should include all costs necessary to bring it to the condition and site necessary for its intended use As a result the value incurred in financing expenditur... View the full answer