Economic Accrual of Interest

Economic Accrual of Interest means:
the cost of an indebtedness for a given period. The amount of interest payable for the use of money for a given period is determined by multiplying the interest rate for that period by the unpaid balance of the loan, which includes any prior accrued but unpaid interest. An accrual basis taxpayer is required to use economic accrual of interest for calculating the interest deduction.