Interest on all debt is normally deductible before taxes are assessed on a company's income. Corporate legislation requires disclosure of interest payable on loans, and companies often show a single interest figure in the income statement while providing details in a note that may also include netting out of interest received or some other adjustments. In cost accounting, interest is normally excluded from cost computations on the grounds that (being a payment for capital) it is equivalent to dividend, and hence is a finance item and not a cost item.
Depending on the situation, holding an interest may also be a qualification (such as the requirement of insurable interest for an insurance policy) or disqualification (such as a direct interest in the subject matter of a court case by anyone acting in a judicial capacity).
