ASC 944-30-35-3, ASC 944-30-35-7, and ASC 944-30-35-12, applicable to traditional long-duration, universal life, and participating life insurance contracts, respectively, require that, in computing amortization, interest be accrued on the unamortized DAC balance. One acceptable view is that it would not be appropriate to accrete interest on the DAC reported asset balance to an amount beyond the amount initially capitalized. This view is based on the fact that DAC represents a deferred cost under which only actual costs that qualify for deferral are capitalizable. Therefore, there would be no basis to increase that asset beyond the actual costs paid.