The transaction is coded to phase one in the accounting software, coded as other types of costs (See <a href="http://businessecon.org/2012/12/use-phase-accounting-in-construction-part-i/)">http://businessecon.org/2012/12/use-phase-accounting-in-construction-part-i/)</a> and this cost is accumulated as an asset on the books of the company on the balance sheet.