5 concepts
Cost of Land
Land is recognized at its historical cost or purchase price, and can include any other related initial costs spent to put the land into use.
Cost of Buildings
The cost of a building is its original purchase price or historical cost and includes any other related initial costs.
Cost of Equipment
The cost of equipment is the item's purchase price, or historical cost, plus other initial costs related to acquisition and asset use.
Cost of Improvements
The cost of an asset improvement is capitalized and added to the asset's historical cost on the balance sheet.
Cost of Interest During Construction
The amount of interest cost incurred and/or paid during an asset's construction phase is part of an asset's cost on the balance sheet.