I am interested in how other institutions are handling liability insurance premiums related to capital construction. I believe they should be capitalized as a part of the cost of construction but wanted to see what others are doing.
Any feedback is appreciated.
Liability insurance on capital construction as you say should be capitalized. This would aford the insurance cost the same treatment as interest incurred on capital construction. I am assuming that the premiums which we are talking about are significant. It is a direct cost because it is clearly identifiable to the construction and benefits only the construction project.