Capitalisation of interest to asset if interest is waived

Subhrajit Bhattacharjee (Service) (61 Points)

19 April 2020  

A loan was taken for construction of an asset and interest was capitalized till the date of completion of construction. Subsequently, if the whole of the interest is waived, does the capitalized interest need to be reversed?

In a different situation, if the interest is paid by a third party (government), does the interest need to be capitalized? I suppose not.

Thank you.