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

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), interest incurred during self-construction of an asset can be capitalized if actual loans are obtained to finance the construction.

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