Which of the following is NOT a difference between FASB Statement No. 34 and FASB Statement No. 62?

The concept of capitalization pertains to how costs related to acquiring or improving long-term assets are recognized in financial accounting. FASB Statement No. 34 and FASB Statement No. 62 are both relevant to this topic, focusing on different aspects of capitalization practices.

The correct choice reflects that the requirement regarding the restriction of debt proceeds to specified qualifying assets is not a distinguishing factor between the two statements. Both FASB Statement No. 34 and FASB Statement No. 62 address the concepts and methodologies surrounding capitalized interest, but they do not differentiate based on whether debt proceeds must be externally restricted for qualifying assets. This requirement is generally associated with the overall principles of capitalizing interest rather than a difference between these specific statements.

In contrast, aspects such as the start and close of the capitalization periods, as well as the formula for calculating capitalized interest indeed differ between the two standards. Each statement outlines unique criteria for when capitalization begins and ends, and they may also prescribe different methodologies for calculating the amount of interest that can be capitalized, making those elements significant points of difference.

Understanding these nuances allows for better adherence to the appropriate accounting standards and enhances one's grasp of the principles of capital planning and asset management.