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How would you record interest income received during the construction period of a development project?

How would you record interest income received during the construction period of a development project?

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The interest which is received during the construction period would be non- normal kind of interest and those are not related to the income and expenditure of the business, and interest which has been received during construction period of a development project would be treated as capitalised interest and they are to be treated as a Capital Asset.

The value of these interest which are received during the construction period needs to be capitalised and they are taken into the value of the overall asset and they are not treated as interest income of regular nature.

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