The interest capitalization period for a self-constructed asset ends either when the asset is substantially complete and ready for use or when interest costs no longer are being incurred.

Question

Quizplus · Accepted Answer

This statement is true. The interest capitalization period for a self-constructed asset ends either when the asset is substantially complete and ready for use or when interest costs no longer are being incurred. This means that interest costs incurred during the construction phase of the asset are capitalized and added to the cost of the asset until it is ready for use or interest costs are no longer being incurred.

The Interest Capitalization Period for a Self-Constructed Asset Ends Either