FASB ASC Subtopic 835-20, Capitalization of Interest

Subtopic 835-20 is the current US GAAP research starting point for interest capitalization. A controlled analysis identifies a qualifying asset and a supported capitalization period before calculating weighted-average accumulated expenditures. The interest that could have been avoided is then bounded by the entity's actual interest cost for the period.

The calculation does not decide whether construction activity was underway, whether an asset qualifies, or whether an interruption should suspend capitalization. Those are evidence-dependent scope and timing conclusions.