Legal Resources Accounting Matters Account Releases

Question:

Where should amounts relating to interest during construction be reported on Statement E - Source and Application of Funds for the Year, schedule pages 118 and 119, of the F.P.C. Forms No. 1 and No. 2?

Answer:

When reporting the Source of Funds the amounts relating to interest during construction should be reported as an item under Other (net): line 8, Principal Non-cash charges (Credits) to Income. When reporting the Application of Funds, each item under the Construction and Plant Expenditures (inc. land) section shall be reduced by the related amount of interest during construction added thereto during the period.