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SPA Process User’s Guide
Chapter 1 – Introduction to Capital Assets

Construction in Progress

Construction in Progress Definition

Construction in Progress reflects the cost of all projects for construction of buildings, other improvements, equipment and intangible assets that are in progress (under way) at a particular point in time.

Depreciation Methodology

Depreciation is not applicable while assets are accounted for as construction in progress.

Capitalization Threshold

Construction in progress assets are capitalized to the appropriate capital asset categories at the earliest occurrence of:

  • substantial completion contract documents are executed,
  • occupancy or
  • when the asset is placed into service.

Chapter 4 explains how to report construction in progress in SPA.