Which of the following would be expensed rather th
Which of the following would be expensed rather than capitalized as property, plant and equipment if incurred during construction of a new facility?
A. Interest costs during construction.
B. Expenses associated with classified advertising to recruit new employees.
C. Shipping costs for an assembly required for customizing new equipment.
参考解答
4j8***102
2024-11-15 07:05:50
Ans：B.
All administrative costs associated with hiring plant employees would be expensed in the period incurred. U.S.GAAP requires capitalizing interest costs on any project financed using debt, freight expenses incurred as part of making equipment ready for production, and labor costs incurred prior to the start of plant operations.
B. Under both IFRS and U.S.GAAP, the interest costs incurred during the construction of a long-lived asset, such as a new manufacturing or distribution facility, are required to be capitalized.
C. Shipping costs for an assembly required for customizing new equipment should be capitalized.
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