Final answer:
The statement is false. Both U.S. GAAP and IFRS allow for the capitalization of interest costs during construction, as dictated by IAS 23 'Borrowing Costs' for IFRS.
Step-by-step explanation:
The statement that interest costs incurred during construction are not capitalized under IFRS is false. Just like U.S. GAAP, IFRS allows for the capitalization of interest costs as part of the cost of an asset during its construction. This process is guided by IAS 23 'Borrowing Costs' under IFRS, which specifies the conditions under which interest and other costs incurred to finance the construction of assets should be capitalized.
The main criteria include whether the costs are directly attributable to the acquisition, construction, or production of a qualifying asset and whether it takes a substantial period of time to get the asset ready for its intended use or sale.