Capitalization of Interest Cost in Financial Statements That Include Investments Accounted for by the Equity Method—an amendment of FASB Statement No. 34 (Issued 4/82)
This Statement amends FASB Statement No. 34, Capitalization of Interest Cost, (1) to limit capitalization of consolidated interest cost to qualifying assets of the parent company and consolidated subsidiaries and (2) to include investments (equity, loans, and advances) accounted for by the equity method as qualifying assets of the investor while the investee has activities in progress necessary to commence its planned principal operations provided that the investee's activities include the use of funds to acquire qualifying assets for its operations. This Statement does not affect the accounting for and reporting of capitalized interest cost in the separate financial statements of investees.