What it is
A development project accumulates cost month by month. Capitalized interest is computed on average accumulated expenditures at the borrowing rate, not more than the interest actually incurred.
The workbook accumulates spend by category, applies a monthly rate, caps interest at what was incurred, tracks cumulative capitalized interest and ties total project cost to the ledger.
When to use it
- Developers with construction loans.
- Auditing capitalized costs.
- Monthly project cost reporting.
What’s inside
- Costs tab by month with spend, average expenditures and interest
- Summary tab with totals and tie-out
- Flags where the actual interest limit applies
- Legend tab
Standard cited
This template follows AU-C 330. 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 costs should be capitalized?
That is a judgment under the guidance the entity applies. The workbook accumulates what you enter; the audit program tests qualification.
Does it compound capitalized interest?
No. Adjust the average if your policy requires it.
Related templates
- Real Estate Development and Capitalized Costs Audit Program
- Real Estate Impairment Recoverability Test (ASC 360)
- Fixed Asset Rollforward (Excel)
- Debt and Interest Rollforward Schedule
Last updated 11/06/2026. All free templates.