What it is
Development projects hold a large balance of costs that rest on a decision: which costs belong to the project, and until when. Mistakes move expense into the balance sheet.
The program covers project understanding, capitalized costs, interest and indirect cost allocation, and recoverability and presentation.
When to use it
- Developers and owners with ground-up or major redevelopment projects.
- Projects with construction loans and capitalized interest.
- Stalled or over-budget projects.
What’s inside
- Project list, budget and draw process procedures
- Cost vouching, qualifying cost and cutoff tests
- Capitalized interest and indirect cost procedures
- Impairment, classification and commitment disclosure procedures
Standard cited
This template follows AU-C 330, 540. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 330 explained.
Questions
Which accounting guidance does it cite?
None by paragraph. The entity’s capitalization and impairment policies follow the guidance it applies to real estate and property, and the program tells the auditor to record that guidance in the file.
Is there a schedule for capitalized interest?
Yes. The development cost and capitalized interest schedule computes monthly interest on average accumulated expenditures.
Related templates
- Audit Program: Real Estate Entity
- Real Estate Impairment Recoverability Test (ASC 360)
- Real Estate Owner and Operator Audit Checklist
- Real Estate Development Cost and Capitalized Interest Schedule
Last updated 11/06/2026. All free templates.