Question

Is restoration of a previously recognized impairment loss on long-lived assets allowed?

Mega Inc. capitalized interest on a new warehouse building constructed during the year. In preparing the annual financial statements, what are the disclosure requirements with respect to capitalized interest costs?

FASB ASC - - -

Note: Some examples of correctly formatted FASB ASC responses are 205-10-05-1, 323-740-S25-1, 260-10-60-1A, 260-10-55-99 and 115-60-35-128A

Answer 1

ASC 360-10-35-20

Restoration of a previously recognized impairment loss on long-lived assets is prohibited under US GAAP.

ASC 835-20-50-1

Disclosures:

* The historical cost of acquiring certain assets.

* Qualifying assets - Assets are constructed or produced for the entity's own use

* A period in which no interest cost is capitalized, the amount of interest cost incurred and charged to expense during the period

* A period in which some interest cost is capitalized, the total amount of interest cost incurred during the period and the amount thereof that has been capitalized.