When is CAPEX classified as asset under construction?

Question

A company has a capex project which streches over more than one financial period and is to be completed over three years. The first phase is generating income for the company.
Will the cost incurred in year one (Phase one)  be recognised as an asset or as an asset under construction?

Answer 1

I could have given a better answer if I knew the nature of this project. The general rule is that you can recognize an asset if

1. the asset meets the definition of PPE (IAS 16.6)
2. it is probable that future economic benefits associated with the item will flow to the entity (IAS 16.7)
3. the cost of the item can be measured reliably (IAS 16.7)