# ASC 835-20-40: Interest — Capitalization of Interest — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/835/20/#40-derecognition)

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## ASC 835-20-40: 40 Derecognition

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##### [835-20-40-1](https://asc.understandingaccounting.org/asc/835/20/#835-20-40-1)

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[Interest cost](https://asc.understandingaccounting.org/glossary/i/#interest-cost "Interest cost includes interest recognized on obligations having explicit interest rates, interest imputed on certain types of payables in accordance with Subtopic 835-30, and interest related to a finance lease determined in accordance with Topic 842. With respect to obligations having explicit interest rates, interest cost includes amounts resulting from periodic amortization of discount or premium and issue costs on debt.") is an integral part of the total cost of acquiring a qualifying asset. Therefore, its disposition shall be the same as the disposition of other components of asset cost.

##### [835-20-40-2](https://asc.understandingaccounting.org/asc/835/20/#835-20-40-2)

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Interest capitalized on an investment accounted for by the equity method shall be accounted for in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13).