I watched a good amount of other videos explaining this topic and all of them put me to sleep. Your way of explaining things is very engaging and clear. Please make more videos! :)
I have my CPA exam tomorrow. I already knew how to do all of this but your video helped me UNDERSTAND it so now I know that I will never forget. It just makes sense so there is no way I will make a mistake now. Thank you so much. You are talented at explaining.
I have watched a couple of your videos now and I just want to say that the way you explain things is so clear to me. Thank you for providing this information.
Thanks for the video. One question: wouldn't you need to multiply your finaly number of $204,650 by 11/12, since you can only capitalize interest starting at the time you made your first expenditure?
Great point. I wonder whether taking the initial construction loan triggers the beginning of the project even before buying the land? After all, taking the loan is a very necessary step in order to get the asset ready for its intended use…
I am not sure why I am not still understanding. My professor also has youtube videos about this capital interest and his and yours have different steps
Hi... I wanna ask, how to calculate the capitalization period if the actual expenditures start 4 February 2020 and 28 June 2020 ? The end-year period is every 30 June... Hope can answer this question ^_^
I have One question kindly can your short answer, please. If a European company uses euros to repay its US-dollar loan and incurs an exchange loss of $10,000. can you include it in a capitalizing cost or not. and a second question if I borrow 200,000 at 8% interest = 16000 interest cost can I add it to total borrowing of 200,000. 200,000+16000+10,000(exchange lose) = 226,000 is the total capitizing cost- or it is only with the given interest like total = 216,000. If it is exactly a two-year construction project. what I should mention in interset regarding total 200,000 borrowings + exchange loss. or without exchange loss? thanks. waiting for your reply.
So that's how the principal on my student loans jumped up a few thousand... hm.. at least now I know how my student loan company is trying to give me the shaft. I always wondered how debts grew so rapidly.
Sorry to say but capitalization of interest doesn't really apply in the situation of student loans. The main reason for the increase is compounding interest.
@@matthewtomasulo5714 Interest capitalization occurs in student loans at the end of forbearance's and deferments. Deferments in student loans come with partial or total interest subsidies for subsidized loans but not for unsubsidized loans. Interest also capitalizes after changing repayment plans. If there's one thing that anyone should take away before taking out student loans is the effects of interest capitalization and the importance of staying on top of your loans. Interest cap will absolutely bury you if you get on the wrong side of it. I would also stress that you should start paying your loans preferably while you are still in school while you have the interest-paying deferment in effect, and repay any leftover funds and use employment to support yourself instead of relying on loan money. If I had done this I would have had half the principal balance I owe now.
![What is Project Governance? [CLEAR BREAKDOWN]](http://i.ytimg.com/vi/NHmxGCI8sos/mqdefault.jpg)
This is by far the most clear example of interest capitalization and WAAE that I've watched.
I watched a good amount of other videos explaining this topic and all of them put me to sleep. Your way of explaining things is very engaging and clear. Please make more videos! :)
I have my CPA exam tomorrow. I already knew how to do all of this but your video helped me UNDERSTAND it so now I know that I will never forget. It just makes sense so there is no way I will make a mistake now. Thank you so much. You are talented at explaining.
I LOVE this video. It explains this confusing topic very clearly.
you're amazing at explaining this, much better than my uni teacher
I have watched a couple of your videos now and I just want to say that the way you explain things is so clear to me. Thank you for providing this information.
Thank you! I’ve watched so many videos on this topic and yours is the only one that makes sense!
Ty! You explained this better than my college professor!
great video
your way of explaining the stuffs is easy to understand! thank you! you should make more videos :))))
your video is great! I was really struggling with this topic, but you explained it very well! Thank you so much!
wow great video, very clear and organized
Very helpful-thank you!
OMG SUPER CLEAR!! Thank u so much
Good
Perfect.Thank you!
thankyou so much! This was very helpful!
You're the best, thank you.
Thanks for the video. One question: wouldn't you need to multiply your finaly number of $204,650 by 11/12, since you can only capitalize interest starting at the time you made your first expenditure?
Great point. I wonder whether taking the initial construction loan triggers the beginning of the project even before buying the land? After all, taking the loan is a very necessary step in order to get the asset ready for its intended use…
Thank u from egypt
It was very helpful.
But sad part is you have stopped uploading tutorial a long ago.
your an angel :D
I am not sure why I am not still understanding. My professor also has youtube videos about this capital interest and his and yours have different steps
Thank you for your help
Hi... I wanna ask, how to calculate the capitalization period if the actual expenditures start 4 February 2020 and 28 June 2020 ? The end-year period is every 30 June... Hope can answer this question ^_^
I have One question kindly can your short answer, please.
If a European company uses euros to repay its US-dollar loan and incurs an exchange loss of $10,000.
can you include it in a capitalizing cost or not.
and a second question if I borrow 200,000 at 8% interest = 16000 interest cost can I add it to total borrowing of 200,000.
200,000+16000+10,000(exchange lose) = 226,000 is the total capitizing cost- or it is only with the given interest like total = 216,000.
If it is exactly a two-year construction project. what I should mention in interset regarding total 200,000 borrowings + exchange loss. or without exchange loss?
thanks. waiting for your reply.
How do u know in the "month outstanding" section, the amount spent will be divided by 12? Please explain this concept
So that's how the principal on my student loans jumped up a few thousand... hm.. at least now I know how my student loan company is trying to give me the shaft. I always wondered how debts grew so rapidly.
Sorry to say but capitalization of interest doesn't really apply in the situation of student loans. The main reason for the increase is compounding interest.
@@matthewtomasulo5714 Interest capitalization occurs in student loans at the end of forbearance's and deferments. Deferments in student loans come with partial or total interest subsidies for subsidized loans but not for unsubsidized loans. Interest also capitalizes after changing repayment plans. If there's one thing that anyone should take away before taking out student loans is the effects of interest capitalization and the importance of staying on top of your loans. Interest cap will absolutely bury you if you get on the wrong side of it. I would also stress that you should start paying your loans preferably while you are still in school while you have the interest-paying deferment in effect, and repay any leftover funds and use employment to support yourself instead of relying on loan money. If I had done this I would have had half the principal balance I owe now.
@@matthewtomasulo5714 interest on student loans (federal loans anyway) accrues daily and does not compound.