Interest incurred on interim or long-term financing during construction of general capital assets cannot be capitalized as part of the cost of those assets.

Question

Quizplus · Accepted Answer

GASB standards require that interest incurred during the period of construction not be capitalized as part of self-constructed general capital assets. Such interest should be capitalized, however, for self-constructed capital assets of a proprietary fund.

Interest Incurred on Interim or Long-Term Financing During Construction of General