1108 Interest Costs on Long Term Debt

The Treasurer’s office in conjunction with the Comptroller’s Office is responsible for accounting for all interest costs in accordance with the applicable financial accounting pronouncements. Generally these standards provide that:

1. All interest cost will be recorded as an expenditure when incurred. Interest costs resulting from debt used to finance construction or renovation of plant will be capitalized as required by the Generally Accepted Accounting Principles (GAAP).