Fixed Asset Capitalization Policy and Inventory Procedure

Fixed Asset Capitalization Policy and Inventory Procedure -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
BELMONT UNIVERSITY Fixed Asset Capitalization Policy and Inventory Procedure Proposed by: Vice-President Finance and Operations University Controller Approved by: Senior Leadership Effective date: Purpose To establish guidelines for the control of capital assets owned by the University. The purposes of the controls are to protect capital assets, to preserve the life expectancy of capital assets, to avoid unnecessary duplication of assets on campus, to provide a guide for the future replacement of assets, and to establish a basis for the amount of insurance coverage required. Definition A capital asset, for the purposes of this policy, is defined as tangible or intangible property owned by the institution and property leased from others that qualify as a capital lease or leasehold improvement with a useful life that extends beyond the year it is placed in service and meets the definition and minimum dollar amount for capitalization per asset category as follows: 1. Land – Real property that is purchased or acquired by gift or bequest for operating purposes regardless of value. 2. Land improvements – Gifts acquired or costs incurred to prepare land for its intended business use in excess of $5,000, such as landscaping shrubbery, roads, sidewalks, fences, bridges, lighting, sewers, and athletic fields, tracks and courts. 3. Buildings and improvements – All structures used for operating purposes including all permanently attached fixtures, machinery, and other components that cannot be removed without damage, such as boilers, furnaces, air conditioners, elevators, wiring, and lighting fixtures. All alterations, renovation, and repairs to existing structures in excess of $5,000 that increase the value of the property, make it more useful, or lengthen its life. 4. Leasehold improvements – All alterations, renovations, and repairs to leased facilities in excess of $5,000 that increase the value of the property, make it more useful, or lengthen its life. 5.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Fixed Asset Capitalization Policy and Inventory Procedure -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online