Lancaster EPrints

Capitalisation of Interest

Peasnell, Ken (1993) Capitalisation of Interest. British Accounting Review, 25 (1). pp. 17-42. ISSN 0890-8389

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Abstract

The purpose of this paper is to examine the case for capitalising interest on self-constructed and maturing assets. Three perspectives on interest capitalisation- cost matching, opportunity cost, and valuation—are compared and contrasted. The paper's principal contributions are twofold: (i) to show how interest capitalisation can be related to the concept of deprival value; and (ii) to analyse the issues of capital structure, the choice of an appropriate capitalisation rate and the treatment of the resultant credits that have plagued the efforts of accountants in this area.

Item Type: Article
Journal or Publication Title: British Accounting Review
Subjects: H Social Sciences > HG Finance
Departments: Lancaster University Management School > Accounting & Finance
ID Code: 55079
Deposited By: ep_importer_pure
Deposited On: 13 Jun 2012 16:15
Refereed?: Yes
Published?: Published
Last Modified: 09 Apr 2014 23:39
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/55079

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