Crucial 2012 Annual Report Download - page 294

49
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
Under U.S. GAAP, directly related transaction costs for financial instruments not measured at fair value upon
initial recognition are included in the determination of cost. Unlike ROC GAAP, certain internal costs of
originating loans that are related directly to specified activities performed by the lender are included in
capitalized initial direct costs. However, for financial liabilities, the transaction costs are deferred as an asset,
unlike ROC.
(m) Capitalization of interest expense
Under ROC GAAP, capital increase in cash for which government approval is obtained specifically for the
construction or expansion of plant facilities and for purposes of availing an investment tax credit thereof is
deducted from the total capital expenditures relating to such construction or expansion for purposes of
capitalizing the interest expense incurred from existing borrowings.
Under U.S. GAAP, capital increase in cash for which government approval is obtained specifically for the
construction or expansion of plant facilities and for purposes of availing an investment tax credit thereof is
not deducted from the total capital expenditures relating to such construction or expansion for purposes of
capitalizing the interest expense incurred from existing borrowings.