Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

52   ASC 835 INTEREST

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

ASC 835-20, Capitalization of Interest

Interest cost

Capitalization interest rate

Capitalizable base

Example of accounting for capitalized interest costs

Determining the time period for interest capitalization

Capitalization of interest costs incurred on tax-exempt borrowings

Summary of interest capitalization requirements

ASC 835-30, Imputation of Interest

Receivables

Note issued solely for cash

Note issued for cash and rights or privileges

Example of accounting for a note issued for both cash and a contractual right

Note issued in exchange for property, goods, or services

Example of accounting for a note exchanged for goods

Notes and bonds

Summary of ASC 835-30

Notes issued solely for cash

Example of bonds issued for cash

Notes issued for cash and a right or privilege

Example of accounting for a note issued for both cash and a contractual right

Noncash transactions

Example of accounting for a note exchanged for property

Example of accounting for a note exchanged to property

Redeemable instruments

Sales of future revenue

Effective Interest Method

Example of applying the effective interest method

Example of note issued between payment dates

PERSPECTIVE AND ISSUES

Subtopics

ASC 835, Interest, contains three Subtopics:

• ASC 835-10, Overall, which merely points to other Topics with guidance on interest
• ASC 835-20, Capitalization of Interest ...