"Our University is just now implementing the change under GASB 89 - Accounting for interest cost incurred before the end of the construction period - Summary - Statement No. 89 (gasb.org).
This statement was to be effective after December 15, 2020. Our University System is implementing as of July 1, 2022.
Under prior governmental accounting standards, GASB universities, colleges, hospitals, and governments with a business-type activity or enterprise fund were required to capitalize interest costs incurred before the end of a construction period as part of the cost of the related capital asset. With the application of this statement, organizations and funds will now expense this type of interest cost as incurred. No more interest cost capitalization.
Since this is a required change & a true cost accounting change revision to the DS-2, would this be considered a "material" accounting change that needs to be reported to HHS/ONR prior to the submission of the next F&A proposal cycle? When did/will your University make the change and report to your cognizant agency?"Feel free to respond directly to me to pass on your advice/input if you are not comfortable posting here. Our colleague would be most appreciative either way.Thanks in advance!