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