Construction Period Interest refers to the interest cost incurred on funds borrowed to finance the construction of a long-term asset during its construction period. This interest is capitalized, meaning it is added to the cost of the asset rather than expensed immediately. The capitalization of construction period interest aligns with the matching principle, ensuring that costs are recognized in the same period as the benefits they generate.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
