Can anyone tell me whats with Capitalising interest cost & Interest Coverage ratio?
if you are building a new factory, the interest payments before completion can be capitalised.
the IR coverage ration is related to this, but more applicable to operating lease adjustment, i think the fomula is ( from memory)
CIRC = ( EBIT + lease expense - assetvalue/life) / (cash IR payments + lease payments)
(doesn’t look right, but can’t look it up at the moment)