The interest costs on funds used to acquire an asset should not be capitalized even if a significant period of time is required to bring the asset to a condition or location necessary for its intended use.

Question

Quizplus · Accepted Answer

Interest costs on funds used to acquire an asset can be capitalized during the period of time required to bring the asset to a condition and location necessary for its intended use, according to accounting standards such as GAAP and IFRS.

The Interest Costs on Funds Used to Acquire an Asset