Governmental entities that were capitalizing interest costs incurred during the period of construction for a business-type activity are now required to expense the interest as incurred.  The interest costs were previously allowed to be included in the historical cost of the asset for business-type activities.  The requirement is effective for reporting periods beginning after December 15, 2019, but earlier application is allowed.  Governmental entities with reporting periods beginning January 1, 2020 or later, should cease capitalization of these costs.  This standard aligns business-type reporting requirements with the standards governing governmental activities, which should improve comparability.  If you need additional assistance with GASB 89 or other governmental accounting issues, please contact a member of our governmental accounting team.