ASC 360 PPE Training #03 — Interest Capitalization and AROs

Two special cost layers that must be added during the construction phase: interest on qualifying assets (ASC 835-20) and legal obligations to retire an asset at end of life (ASC 410). This lesson covers CIP mechanics, the three conditions for interest capitalization, and the two-component ARO accounting model. What you'll learn in this video: • Construction in Progress (CIP) — accumulation, the reclassification trigger, and the common aging error • ASC 835-20 interest capitalization — qualifying assets, when to begin and cease, and the capitalization rate • ASC 410 Asset Retirement Obligations — inception entry, accretion, and why accretion is operating expense 📚 Part of: ASC 360 PP&E Training 🎬 Playlist: ASC 360 PPE Training 🎯 Audience: Intermediate — accounting staff, team leads, and finance practitioners 📌 Series 13 — PNJ Group Financial Statements Training Handbook #ASC360 #InterestCapitalization #ARO #ConstructionInProgress TAGS ASC 360, ASC 835-20, interest capitalization, qualifying asset, construction in progress, CIP accounting, CIP reclassification, capitalizing interest, weighted average interest rate, average accumulated expenditures, ASC 410, asset retirement obligation, ARO accounting, ARO at inception, accretion expense, ARO liability, decommissioning cost, PP&E construction costs, US GAAP interest rules, accounting journal entries construction, ARO fair value, PP&E training intermediate, accretion vs interest expense