{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/835/980/#30-initial-measurement","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":"835-980","subtopic_title":"Regulated Operations","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"835-980-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_49842B81-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a regulator requires an entity to capitalize certain costs as discussed in paragraph <a href=\"/asc/835/980/#835-980-25-1\" class=\"xref\">980-835-25-1</a>, a computed interest cost and a designated cost of equity funds are capitalized, and net income for the current period is increased by a corresponding amount. </span></span><span class=\"sfragment\" id=\"sfr_49842C80-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In such cases, the amounts capitalized for rate-making purposes as part of the cost of acquiring the assets shall be capitalized for financial reporting purposes instead of the amount of interest that would be capitalized in accordance with Subtopic <a altsource=\"GUID-07251D70-AAFA-429D-B7E1-4BA74D4FD303.ditamap\" class=\"ditamap\">835-20</a>.</span></span><span class=\"sfragment\" id=\"sfr_49842D56-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> Those amounts shall be capitalized only if their subsequent inclusion in <a href=\"/glossary/a/#allowable-costs\" class=\"term\" title=\"All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments.\"><span>allowable costs</span></a> for rate-making purposes is probable. </span></span></div></div>","snippet":"If a regulator requires an entity to capitalize certain costs as discussed in paragraph 980-835-25-1, a computed interest cost and a designated cost of equity funds are capitalized, and net income for the current period …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d25cc761618ee5b689bb7267fefa426336980f3cadba162f02692beccad221a6","downloaded_from":"2026-09-10T01:51:40.838Z","last_downloaded_at":"2026-09-10T01:51:40.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478497","source_sha256":"4f2803ac7932d11d25000a466eda74c9bb48a51c70abf8915714fa8489465133"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db2f8ef709d36f5f5da00bff34a973127797b5e56dd0792505fb74b80be1c190","downloaded_from":"2026-09-10T01:51:40.838Z","last_downloaded_at":"2026-09-10T01:51:40.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478497","source_sha256":"4f2803ac7932d11d25000a466eda74c9bb48a51c70abf8915714fa8489465133"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7150cb2dbcea1e679c012b7e4e1b829bf4abc281563dbdfb9fb68e1fcc93e79c","downloaded_from":"2026-09-10T01:51:40.838Z","last_downloaded_at":"2026-09-10T01:51:40.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478497","source_sha256":"4f2803ac7932d11d25000a466eda74c9bb48a51c70abf8915714fa8489465133"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7150cb2dbcea1e679c012b7e4e1b829bf4abc281563dbdfb9fb68e1fcc93e79c","downloaded_from":"2026-09-10T01:51:40.838Z","last_downloaded_at":"2026-09-10T01:51:40.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478497","source_sha256":"4f2803ac7932d11d25000a466eda74c9bb48a51c70abf8915714fa8489465133"}}