Interest payment needs to be submitted in balance sheet ?? But i think it is non operating expenses and to be shown in income statement. Then how capitalize such expense ?
When an asset requires a long period of time to get ready for its intended use, the interest costs associated with constructing or acquiring the asset are capitalized. Capitalized interest is reported as part of the asset’s cost on the balance sheet; in the future, it is reported as part of the asset’s depreciation expense in the income statement. IFT Support Team
Not always. Common labor costs that you can capitalize include the cost of assembly, construction and architecture. Certain labor costs cannot be capitalized, including the cost of a business owner working on the project, indirect labor costs such as the cost of the accountant recording the transaction, any time that is not tracked directly to the project, time spent stocking inventory for the use of the equipment, or property and services provided or paid to general company officers or employees IFT Support Team
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YOURS LECTURES ARE AWESOME INSTEAD OF READING THAT BORING BOOKS FOR HOURS I UNDERSTOOD THIS IN 16 MIN TYSM KEEP IT UP :)
Thanks for your very kind words.
IFT support team
Is there some slides missing around 4:15?
Thanks!
Sir,
The 4:17 part is not explained.
Kindly brief only about the CFI part.
Thank you.
It is missing. We will fix this. Thanks for your feedback.
IFT support team
Interest payment needs to be submitted in balance sheet ??
But i think it is non operating expenses and to be shown in income statement. Then how capitalize such expense ?
When an asset requires a long period of time to get ready for its intended use, the interest costs associated with constructing or acquiring the asset are capitalized. Capitalized interest is reported as part of the asset’s cost on the balance sheet; in the future, it is reported as part of the asset’s depreciation expense in the income statement.
IFT Support Team
Dear friends, I have a question : Why I should reserve short-term capital and long-term capital pay short-term asset?.
Labour are capitalised?
Not always.
Common labor costs that you can capitalize include the cost of assembly, construction and architecture. Certain labor costs cannot be capitalized, including the cost of a business owner working on the project, indirect labor costs such as the cost of the accountant recording the transaction, any time that is not tracked directly to the project, time spent stocking inventory for the use of the equipment, or property and services provided or paid to general company officers or employees
IFT Support Team
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