Consistent with accounting in capital projects funds, interest capitalization for self-constructed assets of proprietary funds is prohibited.

Question

Quizplus · Accepted Answer

In proprietary funds, interest costs incurred during the construction of an asset can be capitalized, meaning they can be added to the cost of the asset rather than expensed immediately. This is in contrast to capital projects funds, where interest capitalization is not typically practiced.

Consistent with Accounting in Capital Projects Funds, Interest Capitalization for Self-Constructed