A company that is self-constructing a new store, which will open upon completion, is allowed to capitalize the interest during the period of construction if they finance the construction with actual loans.

Question

Quizplus · Accepted Answer

According to accounting standards, interest incurred during the period of construction of a self-constructed asset can be capitalized, provided that the company is financing the construction with actual borrowings.

A Company That Is Self-Constructing a New Store, Which Will