{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/835/922/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"835","topic_title":"Interest","subtopic":"835-922","subtopic_title":"Entertainment—Cable Television","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Prematurity Period—Interest Cost Capitalization","paragraphs":[{"citation":"835-922-25-1","para":"25-1","html":" The amount of interest cost that is capitalized during the prematurity period shall be determined in accordance with Topic 835 by applying an interest capitalization rate determined in accordance with paragraphs to the average amount of qualifying assets for the system during the period. Qualifying assets shall be determined in accordance with the guidance in paragraphs 835-20-30-5 and 835-20-25-5. The amount of interest cost capitalized shall not exceed the total amount of interest cost incurred by the cable television system in that period. During the prematurity period, a portion of the system is in use in the earnings activity of the entity and is not eligible for interest capitalization. The portion of the cost of the system that represents a qualifying asset is the amount of accumulated expenditures in excess of the fraction specified in paragraph 922-360-35-3 of the total estimated cost of the system at the end of the prematurity period. Paragraph 835-20-25-5 states that for assets completed in parts, and where each part is capable of being used independently while work is continuing on other parts, interest capitalization shall stop on each part when it is substantially complete and ready for use. Therefore, that guidance prohibits capitalization of interest cost on the portion of the cable television system that is substantially complete and ready for its intended use. Accordingly, this Topic clarifies that all interest cost incurred during the prematurity period is not necessarily eligible to be capitalized.