zephyranalyst

ftwcfa Wrote:
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> Looking for a little clarity here. I understand
> that expenses that generate benefit in future
> periods can be capitalized, but I'm unclear on
> specific examples of what can and can't be
> capitalized . Any help?


Buy an equipment - if the equipment is expected to provide benefits for this period only, it has to be expensed .. else capitalized

While constructing a project - you borrow money to fund it ... you have to pay interest .. interest could be expensed in every period or capitalized and becomes part of your project's value that will be depreciated over time