Answer
Yes. Total amount of interest capitalized should not exceed the total amount of interest cost incurred by the organization in the same accounting period (FAS 34, Par 15).
Work Step by Step
When dealing with consolidated financial statements, that limitation is applied with reference to the total amount of interest cost incurred by the parent company and consolidated subsidiaries on a consolidated basis. Any separately issued financial statements of a parent company or a consolidated subsidiary, the limitation is applied with reference to the total amount of interest cost incurred.
