1108 Interest Costs on Long Term Debt

Document purpose

The University may incur interest costs during the course of operations.

effective

December, 1986

revised

May, 2018

Reviewed

May, 2021

Responsible Office

Treasurer

Approval

Comptroller

Policy

  1. 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).