Accounting for Title Plant (Issued 6/82)
Summary
This Statement extracts the specialized principles and practices for title plant from AICPA Statement of Position 80-1, Accounting for Title Insurance Companies, and applies to enterprises, such as title insurance enterprises, title abstract enterprises, and title agents, that use a title plant in their operations. This Statement requires that costs directly incurred to construct a title plant be capitalized until the enterprise can use the title plant to do title searches. This Statement also requires that capitalized costs of a title plant not be depreciated and that costs of maintaining a title plant and doing title searches be expensed as incurred.