Accounting for Capital Projects: Assets Under Construction, Capitalisable vs Expensed Costs, Borrowing Costs, Commissioning & Transfer to the Asset Register
Follow a building or machine project from first invoice to depreciation. You will classify project costs with a capitalisation policy, build the assets-under-construction balance, capitalise borrowing costs on spending, track budget vs actual and overruns, split the finished asset into components, start depreciation on the right date and close the project file, with every cell checked as you go.
One-time payment · lifetime access · lessons, labs, exam and certificate included · no subscription.
About this course
This course follows a fictional factory project from the first invoice to depreciation in a spreadsheet. You build the project budget with actual costs and open commitments using SUMIFS, classify every cost with a capitalisation policy table and XLOOKUP, and run the monthly assets-under-construction ledger with a reconciliation to the project report. You capitalise borrowing costs from time-weighted spending with a cap, forecast each category at completion with variance % and approval flags, split the final cost into components with useful lives, start depreciation from the available-for-use date and close the project with AUC at zero and a stacked chart.
Lessons
- The Project Budget: Approved Amount, Cost Categories, Commitments & Actuals Pro
- Capitalise or Expense? Classifying Project Costs with a Policy Table Pro
- The Assets-Under-Construction Ledger: Monthly Additions, Running Balance & Reconciliation Pro
- Borrowing Costs: Weighted Spending × Rate × Time, Capped at the Real Interest Pro
- Overruns: Forecast at Completion, Variance % and Approval Flags Pro
- Commissioning: Final Cost, Components & Useful Lives Pro
- Depreciation Start: Available-for-Use Date, Pro-Rata Months & the First Three Years Pro
- Project Close-Out: Transfer to the Asset Register, AUC = 0 & the Final Summary Pro