Question

Is it true or false that interest on constructed assets should be capitalized per GASB 34?

Answer 1

Interest on constructed assets should be capitalized per GASB 34.

Step-by-step explanation:

The statement that interest on constructed assets should be capitalized per GASB 34 is true.

GASB 34 refers to the Governmental Accounting Standards Board's Statement No. 34, which provides accounting guidelines for state and local governments.

Under GASB 34, interest costs incurred during the construction period of assets that have a long-term useful life, such as buildings and infrastructure, should be capitalized as part of the asset's cost.