GASB 89 - Accounting for interest cost incurred
The Governmental Accounting Standards Board’s Statement No. 89 Accounting for Interest Cost Incurred Before the End of a Construction Period establishes new accounting requirements for municipal utilities.
GASB 89 will require that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business- type activity or enterprise fund.
