This classification includes all projects for the construction of buildings, other improvements, and equipment which are in progress at the end of the fiscal year.
A general ledger account that reflects the cost of construction work undertaken on capital projects, but not completed as of the end of the accounting period.
Capital assets under construction or development that have not yet been placed into service, such as a building or parking lot. Capital assets are not subject to depreciation while in a construction in progress status.
the building is not occupied. In these instances the cumulative cost of projects in process does not have to be reported to the State Comptroller via the CO-59. Instead, this information is generally reported to the State Comptroller via customized GAAP closing package requests that are sent out at fiscal year end to facilitate the preparation of the State's Comprehensive Annual Financial Report. As the Department of Public Works administers most capital projects, construction-in-progress data is maintained at that agency. For capital projects that are administered by other State agencies, construction in progress information would be maintained at those departments.
An accounting category set up by a hospital or healthcare CFO to capture all costs associated with a design and construction project.
An accountancy term, Construction in Progress (CIP) asset entry records the cost of construction work, which is not yet completed (typically, applied to capital budget items). A CIP item is not depreciated until the asset is placed in service. Normally, upon completion, a CIP item is reclassified, and the reclassified asset is capitalized and depreciated.
