This course covers the accounting requirements for interest costs under U.S. GAAP, focusing on both imputation and capitalization. It begins with a review of the rules for recognizing imputed interest when no stated rate exists or when terms are not at market. You’ll learn how to identify transactions that require imputation, how to determine the appropriate interest rate, and how to record the resulting amounts. The course then shifts to the rules for capitalizing interest related to the construction or production of qualifying assets. It explains how to determine which assets qualify, how to calculate capitalizable interest, and how to apply the guidance during the capitalization period. Together, these topics provide a clear and practical understanding of how interest costs affect the financial statements.
Course Publication Date:
September 26, 2025
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$20.00!
| Author: | Kelen Camehl |
| Course No: | ACT-CAPINT-29005 |
| Recommended CPE: | 2.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify situations where imputed interest must be recognized under U.S. GAAP.
- Determine the appropriate interest rate to use when imputing interest.
- Recognize the financial statement impact of recording imputed interest.
- Distinguish between arrangements that require imputation and those that do not.
- Identify assets that qualify for interest capitalization.
- Determine the amount of interest cost eligible for capitalization.
- Recognize the period during which interest must be capitalized.
- Distinguish between interest costs that are capitalized and those that must be expensed.