Accounting Policies Land and Land Improvements Buildings and Building Service Equipment Leasehold Improvements

Size: px
Start display at page:

Download "Accounting Policies. 4.02 Land and Land Improvements. 4.03 Buildings and Building Service Equipment. 4.04 Leasehold Improvements"

Transcription

1 Page 1 of 14 Accounting Policies Section 4.0 Capital Assets 4.01 Capital Assets Defined 4.02 Land and Land Improvements 4.03 Buildings and Building Service Equipment 4.04 Leasehold Improvements 4.05 Equipment 4.06 Software and Software License Fees 4.07 Assets Under Capital Lease Section 5.0 Specific Accounting Policies 5.03 Rates and Methods of Capital Amortization These policies contain excerpts from the Accounting Policy Manual issued by Fraser Health s. It has been prepared to ensure that accounting and financial reporting standards for the recognition of capital assets are consistently applied throughout Fraser Health. It must be noted, however, that it is difficult to phrase policy to conform to all circumstances that may arise and that judgment is required in the determination of appropriate accounting policies.

2 Page 2 of Capital Assets Defined 1.0 Accounting Policies 1.1 Capital assets are defined as those items that meet all of the following criteria: a) Have a useful life 1 expectancy continuing beyond one year b) Are held for the purpose of rendering a service rather than for sale or immediate consumption c) Have a cost of more than the threshold stated for the capital asset category as follows: Category Capitalization Threshold Facility Projects $ 50,000 Leasehold Improvements $ 50,000 Information Systems $ 50,000 Equipment $ 5,000 d) Fraser Health acquires ownership of a tangible asset 1.2 The cost for each capital asset will reflect the total expenditures incurred to acquire, install and prepare the particular capital asset unit(s) for service. For a detailed list of capitalized expenditures by asset category refer to Accounting Policies 4.02 to The cost of a capital asset is not an operating expense in the year of acquisition. Rather, the cost is recorded as an asset and is amortized (or depreciated) over the expected useful life of the asset. 1.4 On the financial statements, the original cost of the capital assets, accumulated amortization and the net book value remaining are shown separately. 1 Useful Life: Period over which the capital asset is expected to be used.

3 Page 3 of 14 POLICY TITLE 1.5 Capital assets may be purchased by or donated (contributed) to Fraser Health: a) Donated (contributed) capital assets are recorded at their fair value at the date of contribution. b) Significant donations (contributions) of capital assets in a given year are disclosed in the financial statements. 1.6 Certain capital assets are classified as Capital Assets in Progress because they are not in working condition. These assets will remain in progress until they are transferred into in service when the asset is substantially complete and capable of operation. 1.7 Capital Assets are classified under the following categories for financial statement presentation: a) Land b) Land Improvements c) Buildings d) Building Service Equipment e) Construction in Progress f) Leasehold Improvements g) Equipment h) Information Systems Equipment i) Equipment in Progress j) Software License Fees k) Assets Under Capital Lease 1.8 Capital Assets are amortized (depreciated) on an individual or pooled basis over the expected useful lives of the assets using the straight-line basis calculation. See Accounting Policy Rates and Methods of Capital Amortization. 1.9 A separate accounting ledger is maintained to track capital assets.

4 Page 4 of Land and Land Improvements 1.0 Accounting Policies 1.1 Land is always considered a capital asset. It differs from other capital assets in that it does not have a finite useful life. Therefore, the cost of land is not amortized and remains constant in the accounts. 1.2 The capitalized cost of land includes: a) The purchase price and net applicable taxes b) Costs incurred to make the land ready for use by Fraser Health including: i) Legal fees ii) Survey costs iii) Rezoning costs iv) Clearing of the land (includes demolition of existing buildings) 1.3 If land is purchased and held for future specified development financing costs may be eligible to be capitalized as an addition to the cost of the land. 1.4 Improvements made to the land to prepare it for construction have a finite useful life and, therefore, are capitalized separately and amortized over the useful life as per Accounting Policy Rates and Methods of Capital Amortization. 1.5 The capitalized cost of land improvements includes: a) Municipal development cost charges b) Drainage systems c) Fencing d) Paving of roads or parking lots e) Landscaping

5 Page 5 of 14 POLICY TITLE 4.03 Buildings and Building Service Equipment 1.0 Buildings and Building Service Equipment 1.1 Buildings include the cost of the building shell and building components. 1.2 Building service equipment includes equipment affixed to buildings and required to make the structure useable. Examples include elevators, HVAC systems and boilers. 1.3 Wherever possible the service equipment should be segregated from the building at the time of recording the asset. 1.4 The cost of the building does not include the land on which the building sits or improvements to the land. The land has a different accounting treatment as discussed in Accounting Policy 4.02 Land and Land Improvements. 2.0 Renovations (Buildings versus Repairs) 2.1 During the life of a building, renovations are incurred with respect to that asset. These expenditures should be analyzed to determine whether they are a betterment to be added to the cost of the building or repairs and maintenance of the building. 2.2 Renovations to a building are capitalized as a betterment if they are over $50,000 and significantly meet any one of the following criteria: a) Extends the useful life 2 of the building; b) Adds to the output or service capacity 3 of the building; c) Reduces the associated operating costs of the building; or d) Improves the quality 4 of the services provided by the building Useful Life: Period over which the capital asset is expected to be used. Output or Service Capacity: Determined by reference to attributes related to physical output capacity such as increase in patients seen or procedures performed. Quality: Attributes such as improvements to care provided.

6 Page 6 of 14 POLICY TITLE 2.3 These renovations are capitalized separately from the original building and amortized as per Accounting Policy 5.03 Rates and Methods of Capital Amortization. 2.4 Expenditures that do not meet the criteria in 2.2 above simply maintain the asset in an ordinarily efficient operating condition and are therefore operating repair or maintenance expenses. EXAMPLE #1: Capital Renovation Fraser Health renovated space within an existing building to enable expansion of Medical Imaging Services. This renovation is capitalized because it: a) increased the service capacity (number of patients seen) b) improved the quality of services (the entire procedure is now done in one location) EXAMPLE #2: Building Service Equipment Fraser Health renovated an existing 20 year old concrete office building with an original useful life of 40 years. The renovation included the replacement of the building s original HVAC system, now 20 years old. The HVAC system is building service equipment and is capitalized separately from the rest of the building. The renovation is capital because the asset (the HVAC system) is being disposed of and replaced with a new asset. The new system is capitalized separately from the building and amortized over its useful life of 15 years. EXAMPLE #3: Operating Renovation (Repairs) As part of the renovation described in Example #2, Fraser Health also replaced the roof of the building, replaced the carpets and painted the interior. These renovations are treated as repairs or operating expenses because the renovations do not extend the useful life of the building, add to its service capacity, reduce its operating costs or improve the quality of the service provided. A roof is a significant repair but it does not extend the life of the building beyond the original 40 year estimate.

7 Page 7 of Leasehold Improvements 1.0 Accounting Policies 1.1 Leasehold improvements are defined as permanent improvements constructed or installed on property that is leased to Fraser Health under an operating lease or rental agreement. 1.2 Permanent improvements to leased property are those items that cannot be removed without causing substantial damage to the leased premises such as wiring, walls, carpeting, etc. 1.3 Equipment and furnishings that can be removed at the termination of the lease must be accounted for as per Accounting Policy 4.05 Equipment. 1.4 Leasehold improvements with an aggregate cost of $50,000 or more are capitalized and amortized over the lesser of the remaining life of the lease or the estimated useful life of the improvements. 1.5 Leasehold improvements with an aggregate cost of less than $50,000 are an operating expense.

8 Page 8 of 14 POLICY TITLE 4.05 Equipment 1.0 Accounting Policies 1.1 Equipment acquired for use by Fraser Health may be classified as capital providing it meets all of the following criteria as per Accounting Policy Capital Assets Defined: a) The item has a useful life 5 expectancy continuing beyond one year, b) The item is held for the purpose of rendering a service, rather than for the consumption, and c) The cost of the item is more than $5,000. Equipment valued under $5,000 is an operating expense. Items cannot be grouped together so that their collective value exceeds $5,000. (See Point 1.4 below) 1.2 Equipment costs include: a) Purchase price and net applicable taxes b) Foreign exchange c) Freight d) Brokerage fees e) Software and/or software license fees that are necessary to the functioning of the equipment in its intended purposes. f) Installation: i) Labour and ancillary equipment required to make the equipment operational and that have no value when the equipment is disposed of. ii) Building renovations that would have no value if that or like equipment were removed. g) Travel expenses related to initial training for maintenance and operations. 5 Useful Life: Period over which the capital asset is expected to be used.

9 Page 9 of Equipment costs do not include the following which must be recorded as operating expenses: a) Staff compensation and local travel expenses for training b) Any costs related to project, vendor or equipment approval, planning or selection c) Extended warranties d) Supplies used in the normal operation of the equipment e) Service/maintenance contracts 1.4 Grouped Items versus Components of a System: a) Generally grouped items are multiple orders of the same equipment. If the total cost of each individual item is less than $5,000, then the entire order is an operating expense. However, orders of extreme magnitude may be considered capital where all the criteria of capital are met other than the dollar threshold. (See Point 1.2 above) b) A system is comprised of components that work together to create a single working asset. When determining whether a system meets the $5,000 threshold and is a capital asset, the combined cost of all of the components must be considered. An example of a system is a physiological monitoring system which is comprised of a central station and a number of patient monitors. NOTE that OR instrument sets, because the individual pieces can be used independently, are NOT a system. Instruments are only capital if the individual items cost more than $5,000 each and have a life expectancy of greater than one year.

10 Page 10 of Software and Software License Fees 1.0 Accounting Policies 1.1 Software acquired by purchase or pursuant to the terms of a licensing agreement may be classified as capital providing it meets all of the following criteria as per Accounting Policy Capital Assets Defined: a) The software has a useful life expectancy continuing beyond one year, b) The software is to be used solely for Fraser Health s internal needs and is not for resale, and c) Components of an integrated systems project are considered capital if the combined costs of the project are greater than $50, Upgrades, interfaces and enhancements should only be capitalized if they result in significant increases in functionality. Routine upgrades included in maintenance agreements are not normally segregated and capitalized unless they provide an extraordinary enhancement in software functionality. 1.3 Equipment purchases and renovations related to software systems are capitalized separately and only if they meet the requirements under Accounting Policy Buildings and Building Service Equipment and Accounting Policy Equipment.

11 Page 11 of The capital cost of major software systems include: a) Purchase price of software or license fees, including related interfaces, and net applicable taxes b) Software development costs c) Foreign exchange d) Freight e) Brokerage fees f) Cost of installation and testing: i) Professional fees for incremental resources (not required after installation) ii) Out of town travel for site visits and vendor meetings related to installation iii) Incremental staff compensation (over and above normal operating levels) to install and test the system iv) Vendor travel expenses for on-site training 1.5 Software costs do not include the following which must be recorded as operating expenses: a) Staff compensation and local travel expenses for training b) Any costs related to project, vendor or software approval, planning or selection c) Service/maintenance contracts d) Catering, office supplies and other costs associated with software implementation not specifically mentioned in Point 1.2 above e) Intangibles where the expenses incurred do not directly result in an identifiable asset, owned by Fraser Health, that has future benefit or embodies the talent or intellectual capital of Fraser Health employees such as a program redesign, data clean-up, policies and procedures.

12 Page 12 of Assets Under Capital Lease 1.0 Accounting Policies 1.1 The Fraser Health Authority enters into various leasing agreements for the use of equipment and facility space. Accounting guideline (PSG-2) requires that leases be defined as capital or operating leases. If the lease meets one or more of the following five criteria at the beginning of the lease agreement, it is classified as a capital lease. Otherwise, it may be classified as an operating lease or a rental agreement. The accounting guideline includes qualitative criteria that requires the use judgement. Each lease must be reviewed in detail and classified on a balance of probabilities. Final judgement will be made by the. The five criteria indicating a lease is capital in nature are: a) The lease transfers ownership of the property to the lessee by the end of the lease term, or b) The lease contains a bargain purchase option, or c) The lease term is equal to 75% or more of the estimated economic life of the leased asset, or d) The net present value of the minimum lease payments exceeds 90% of the fair value of the leased asset at the inception of the lease, or e) The overall effect of the transaction is that all the benefits and risks are substantially transferred to Fraser. 1.2 A lease of land by Fraser Health is an operating lease unless the lease transfers ownership of the property to Fraser Health at the end of the lease term.

13 Page 13 of Accounting for leases: a) A lease that meets the definition of a capital lease as per Point 1.1 above is recorded as an asset and a lease liability at the beginning of the lease. The value of the asset and liability set up in the accounts is the lesser of the fair value of the equipment or property at the start of the lease or the net present value of the minimum lease payments. The liability is reduced as the payments are made. The asset is amortized according to the appropriate asset class. The interest portion of capital lease payments is expensed and does not affect the recorded liability. Only the principal portion of payments reduces capital lease liabilities. b) Operating lease/rental agreement payments are recorded as an operating expense at the time the payments are made. 1.4 Leases for the use of equipment or real property must be reviewed and approved to by the prior to acceptance of the lease.

14 Page 14 of Rates and Methods of Capital Amortization 1.0 General Amortization or depreciation is the process of allocating the cost of capital assets over their service lives on a rational and systematic basis. 2.0 Accounting Policies The straight-line method is used to calculate capital amortization (depreciation) expense. The annual amortization (depreciation) is calculated by subtracting the salvage value 7 of the asset from the purchase price and then dividing this number by the estimated useful life 8 of the asset. 2.2 Assets under capital leases will be amortized (depreciated) over the term of the lease unless ownership passes to Fraser Health or there is a bargain purchase option, in which case the leased assets will be amortized (depreciated) over their estimated useful life. 2.3 Leasehold improvements will be amortized (depreciated) over the term of the lease. 2.4 The estimated useful life is normally determined by reference to the Management Information Systems (MIS) Guidelines produced by the Canadian Institute for Health Information (CIHI). 2.5 The amortization (depreciation) method and estimates of the useful life of a capital asset should be reviewed regularly. Significant events that may indicate a need to revise any of these components include: a) A change in the extent the capital asset is used b) A change in the manner in which the capital asset is used c) Removal of the capital asset from service for an extended period of time d) Physical damage e) Significant technological developments f) A change in the MIS Guidelines estimated useful life Straight-line Method of Depreciation: A process that assumes the asset will lose an equal amount of value each year. Salvage Value: The estimated value of an asset at the end of its useful life. Where the useful life of a capital asset is expected to exceed 40 years but cannot be estimated and clearly demonstrated, the amortization period should be limited to 40 years.

AP 531 - TANGIBLE CAPITAL ASSETS

AP 531 - TANGIBLE CAPITAL ASSETS AP 531 - TANGIBLE CAPITAL ASSETS The following topics are discussed in this administrative procedure: 1.0 Policy 2.0 Purpose 3.0 Scope 4.0 Glossary 5.0 Categorization of Assets 6.0 Accounting and Reporting

More information

Chapter 30 Fixed Assets

Chapter 30 Fixed Assets Chapter 30 Fixed Assets 30.20 Valuing, Capitalizing and Depreciating Fixed Assets 30.20.10 How to value Fixed Assets July 1, 2004 30.20.20 When to capitalize Fixed Assets July 1, 2004 30.20.22 Assets not

More information

The Town of Fort Frances POLICY SECTION ACCOUNTING FOR TANGIBLE CAPITAL ASSETS. ADMINISTRATION AND FINANCE NEW: May 2009 1. PURPOSE: 2.

The Town of Fort Frances POLICY SECTION ACCOUNTING FOR TANGIBLE CAPITAL ASSETS. ADMINISTRATION AND FINANCE NEW: May 2009 1. PURPOSE: 2. The Town of Fort Frances ACCOUNTING FOR TANGIBLE CAPITAL ASSETS SECTION ADMINISTRATION AND FINANCE NEW: May 2009 REVISED: POLICY Resolution Number: 05/09 Consent 156 Policy Number: 1.18 PAGE 1 of 11 Supercedes

More information

Regulations of the University of North Texas System Chapter 08. Fiscal Management. 08.9000 Asset Capitalization

Regulations of the University of North Texas System Chapter 08. Fiscal Management. 08.9000 Asset Capitalization Regulations of the University of North Texas System Chapter 08 08.9000 Asset Capitalization Fiscal Management 08.9001 Regulation Statement. The University of North Texas System shall identify, measure,

More information

HOWARD UNIVERSITY. I. Policy Statement. II. Rationale. III. Entities Affected by the Policy. IV. Definitions. Policy Number: 300-004

HOWARD UNIVERSITY. I. Policy Statement. II. Rationale. III. Entities Affected by the Policy. IV. Definitions. Policy Number: 300-004 HOWARD UNIVERSITY Policy Number: 300-004 Policy Title: ASSET CAPITALIZATION Responsible Officer: Chief Financial Officer Responsible Offices: Office of the Controller, Departments of Strategic Sourcing

More information

Bowdoin Finance Policy Manual

Bowdoin Finance Policy Manual Bowdoin Finance Policy Manual Policy Title Effective Date Revision Date Created by Approval Signature Capitalization Policy May 30, 2008 May 19, 2011 Matt Orlando, Controller Contents 1. Purpose... 1 2.

More information

MARQUETTE UNIVERSITY Office of the Comptroller Capitalization, Inventory, Depreciation and Retirement of Property, Buildings, and Equipment

MARQUETTE UNIVERSITY Office of the Comptroller Capitalization, Inventory, Depreciation and Retirement of Property, Buildings, and Equipment MARQUETTE UNIVERSITY Office of the Comptroller Capitalization, Inventory, Depreciation and Retirement of Property, Buildings, and Equipment Direct all inquiries to: Comptroller s Office 288-0833 Effective

More information

FIXED ASSET PROCEDURES

FIXED ASSET PROCEDURES FIXED ASSET PROCEDURES To comply with the fixed asset capitalization and inventory policy adopted by the Governing Board, and to ensure compliance with the GASB 34 (Government Accounting Board Statement

More information

Capitalization and Depreciation Guidelines

Capitalization and Depreciation Guidelines Capitalization and Depreciation Guidelines Guidelines Statement University of Vermont assets that are capitalized are considered fixed assets and are recorded in the Capital Assets section of the University's

More information

SAN FRANCISCO COMMUNITY COLLEGE DISTRICT ADMINISTRATIVE PROCEDURES MANUAL

SAN FRANCISCO COMMUNITY COLLEGE DISTRICT ADMINISTRATIVE PROCEDURES MANUAL 1 of 6 A. Property Accounting All District Property shall be accounted for through the use of appropriate records and inventory procedures. Deeds shall be properly recorded and safeguarded. All equipment

More information

ACCOUNTING BY GOVERNMENTAL ENTITIES ACCOUNTING AND CONTROL OF FIXED ASSETS OF STATE GOVERNMENT, ACCOUNTING FOR ACQUISITIONS AND ESTABLISHING CONTROLS

ACCOUNTING BY GOVERNMENTAL ENTITIES ACCOUNTING AND CONTROL OF FIXED ASSETS OF STATE GOVERNMENT, ACCOUNTING FOR ACQUISITIONS AND ESTABLISHING CONTROLS This rule was filed as 1 NMAC 1.2.1. TITLE 2 CHAPTER 20 PART 1 PUBLIC FINANCE ACCOUNTING BY GOVERNMENTAL ENTITIES ACCOUNTING AND CONTROL OF FIXED ASSETS OF STATE GOVERNMENT, ACCOUNTING FOR ACQUISITIONS

More information

Title: FIXED ASSET ACCOUNTING Code: B0108

Title: FIXED ASSET ACCOUNTING Code: B0108 POLICY Title: FIXED ASSET ACCOUNTING Code: B0108 Authority: Board Minutes, 9/16/91; 10/28/97 Original Adoption: 9/16/91 Revised/Reviewed: 10/28/97 Effective: 10/29/97 It is the policy of the Board that

More information

Fixed Asset Management

Fixed Asset Management Fixed Asset Management Policy/Procedure This policy applies to faculty and staff with responsibility for purchasing, maintaining or disposing of Fixed Assets, including Department Chairs, Department Heads,

More information

Manual of Accounting and Financial Reporting for Pennsylvania Public Schools CHAPTER 11 TABLE OF CONTENTS 11.A. Chapter 11 11.1

Manual of Accounting and Financial Reporting for Pennsylvania Public Schools CHAPTER 11 TABLE OF CONTENTS 11.A. Chapter 11 11.1 Manual of Accounting and Financial Reporting for Pennsylvania Public Schools CHAPTER 11 TABLE OF CONTENTS 11.1 Capital Assets And Infrastructure 11.1 What Are Capital Assets? 11.1 Valuation Of Capital

More information

State of Florida Statewide Financial Statements Capital Asset Policy. Introduction

State of Florida Statewide Financial Statements Capital Asset Policy. Introduction Introduction For fiscal year ending June 30, 2002, the State of Florida will be required to implement Statement No. 34 of the Governmental Accounting Standards Board (GASB), Basic Financial Statements

More information

Financial Policies: Preserving Capital Investments - Fixed Assets Capitalization and Inventory Control Policy

Financial Policies: Preserving Capital Investments - Fixed Assets Capitalization and Inventory Control Policy Financial Policies: Preserving Capital Investments - Fixed Assets Capitalization and Inventory Control Policy The City invests in capital assets such as property, plant, equipment, facilities and infrastructure.

More information

AGATE FIRE PROTECTION DISTRICT RESOLUTION NO. 11-0908 A RESOLUTION OF THE AGATE FIRE PROTECTION DISTRICT BOARD OF

AGATE FIRE PROTECTION DISTRICT RESOLUTION NO. 11-0908 A RESOLUTION OF THE AGATE FIRE PROTECTION DISTRICT BOARD OF RESOLUTION NO. 11-0908 A RESOLUTION OF THE AGATE FIRE PROTECTION DISTRICT BOARD OF DIRECTORS ADOPTING A CAPITALIZATION POLICY WHEREAS, the Governmental Accounting Standards Board issued Pronouncement #34

More information

FIXED ASSET AND CAPITAL PURCHASE POLICY

FIXED ASSET AND CAPITAL PURCHASE POLICY FIXED ASSET AND CAPITAL PURCHASE POLICY Section I: Definition of a Fixed Asset: A Fixed Asset is any tangible asset purchased for use in the day-to-day operations of the College from which an economic

More information

City of Laredo, Texas Capital Asset Policy and Procedures Effective October 1, 2006

City of Laredo, Texas Capital Asset Policy and Procedures Effective October 1, 2006 City of Laredo, Texas Capital Asset Policy and Procedures Effective October 1, 2006 1.0 Policy Goal The goal of a capital asset inventory system and this policy is to provide control and accountability

More information

Capital Asset Policy. User Guide for Cobb County Employees 4/21/2015. Created for: The Cobb County School District

Capital Asset Policy. User Guide for Cobb County Employees 4/21/2015. Created for: The Cobb County School District User Guide for Cobb County Employees 4/21/2015 Created for: The Cobb County School District 514 Glover Street Marietta, Ga. 30060 (770) 426-3300 Created by: CCSD Financial Services Accounting Services

More information

AAM 55. CAPITAL ASSETS

AAM 55. CAPITAL ASSETS AAM 55. CAPITAL ASSETS 55.010 Accounting 06/02 55.020 Valuation of 07/12 55.025 Thresholds for Capitalizing 07/12 55.030 Acquisition of 06/02 55.040 Repairs & Improvements 07/12 55.050 Depreciation 01/03

More information

State System of Higher Education Financial Accounting Policy 2002-01

State System of Higher Education Financial Accounting Policy 2002-01 State System of Higher Education Financial Accounting Policy 2002-01 Subject: Capitalization of Fixed Assets Authorized By: Robert E. Myers, Interim Vice Chancellor for Finance and Administration Effective

More information

UNIVERSITY OF MISSISSIPPI FIXED ASSET CAPITALIZATION POLICY

UNIVERSITY OF MISSISSIPPI FIXED ASSET CAPITALIZATION POLICY UNIVERSITY OF MISSISSIPPI FIXED ASSET CAPITALIZATION POLICY The term capitalized fixed assets includes land, improvements to land, easements, buildings, building improvements, vehicles, machinery, furniture,

More information

Capital Asset Accounting Policies POLICY STATEMENT

Capital Asset Accounting Policies POLICY STATEMENT Responsible Executive: Controller Responsible Department: A&FS Review Date: May, 2015 Accounting & Financial Services Capital Asset Accounting Policies POLICY STATEMENT I. Capital Asset Policy A. General

More information

DISTRICT SCHOOL BOARD & SCHOOL AUTHORITY TANGIBLE CAPITAL ASSETS PROVINCIAL ACCOUNTING POLICIES & IMPLEMENTATION GUIDE

DISTRICT SCHOOL BOARD & SCHOOL AUTHORITY TANGIBLE CAPITAL ASSETS PROVINCIAL ACCOUNTING POLICIES & IMPLEMENTATION GUIDE DISTRICT SCHOOL BOARD & SCHOOL AUTHORITY TANGIBLE CAPITAL ASSETS PROVINCIAL ACCOUNTING POLICIES & IMPLEMENTATION GUIDE REVISED April 2015 INCLUDES UP TO RELEASE NO. 10 Table of Contents General Introduction...

More information

Capitalization and Depreciation of Property, Plant, and Equipment

Capitalization and Depreciation of Property, Plant, and Equipment Boston College Office of the Financial Vice President Capitalization and Depreciation of Property, Plant, and Equipment University Policy Overview It is the policy of Boston College (the University) to

More information

CITY OF PORT ST LUCIE FINANCIAL POLICY CAPITAL ASSETS

CITY OF PORT ST LUCIE FINANCIAL POLICY CAPITAL ASSETS CITY OF PORT ST LUCIE FINANCIAL POLICY CAPITAL ASSETS I. PURPOSE To provide effective guidelines for the recording, tracking, capitalizing, and safeguarding of the City's Capital assets. II. POLICY In

More information

FIXED ASSET CAPITALIZATION. The Fort Dodge Community School District Fixed Asset Capitalization Policy follows

FIXED ASSET CAPITALIZATION. The Fort Dodge Community School District Fixed Asset Capitalization Policy follows Policy: 0 FIXED ASSET CAPITALIZATION I. Purpose The Fort Dodge Community School District Fixed Asset Capitalization Policy follows the requirements set forth by the Government Accounting Standards Board

More information

FUNDAMENTALS OF IFRS

FUNDAMENTALS OF IFRS INVESTMENT PROPERTY (IAS 40) FUNDAMENTALS OF IFRS 20.1 FUNDAMENTALS OF IFRS CHAPTER 20 Investment Property (IAS 40) 20.2 CHAPTER TWENTY INVESTMENT PROPERTY (IAS 40) 20 Introduction Investment Property

More information

IMPERIAL COUNTY FIXED ASSET ACCOUNTING STANDARD PRACTICE MANUAL

IMPERIAL COUNTY FIXED ASSET ACCOUNTING STANDARD PRACTICE MANUAL IMPERIAL COUNTY FIXED ASSET ACCOUNTING Adopted by Board of Supervisors December 23, 2008 Prepared by the Imperial County Auditor-Controller TABLE OF CONTENTS TITLE CHAPTER NO. PAGE NO. Fixed Asset Inventory

More information

5.5 PROJECT CAPITALIZATION

5.5 PROJECT CAPITALIZATION 5.5 PROJECT CAPITALIZATION 1.0 Purpose To provide a capitalization policy specifically for capital projects used to account for the acquisition, construction or improvement of fixed assets. This document

More information

IRS CODE SECTION 263 FINAL REPAIR/CAPITALIZATION REGULATIONS

IRS CODE SECTION 263 FINAL REPAIR/CAPITALIZATION REGULATIONS IRS CODE SECTION 263 FINAL REPAIR/CAPITALIZATION REGULATIONS Presenting the Top 10 Things You Must Know PRESENTED BY: JOHN MARTELLINI, CPA, MST LGC&D, LLP These seminar materials are intended to provide

More information

COLORADO STATE UNIVERSITY Financial Procedure Instructions FPI 4-1

COLORADO STATE UNIVERSITY Financial Procedure Instructions FPI 4-1 COLORADO STATE UNIVERSITY Financial Procedure Instructions FPI 4-1 1. Procedure Title: Property Management - Capitalization Thresholds for Capital Assets 2. Procedure Purpose and Effect: Procedures for

More information

Number: 1-3 Date Issued: July 15, 1999 Date Revised: October 26, 2010. Subject: Responsible Department: Approved: Purpose. Definitions of Terms

Number: 1-3 Date Issued: July 15, 1999 Date Revised: October 26, 2010. Subject: Responsible Department: Approved: Purpose. Definitions of Terms ADMINISTRATIVE ORDER Subject: Responsible Department: Financial Fixed Assets Inventory Finance Number: 1-3 Date Issued: July 15, 1999 Date Revised: Approved: Purpose To establish a uniform policy for the

More information

Fixed Asset Inventory

Fixed Asset Inventory Fixed Asset Inventory The purpose of the district-wide fixed asset inventory system is to gather information for the preparation of financial statements, including estimated annual depreciation costs of

More information

Fixed Assets Accounting Policy & Procedure

Fixed Assets Accounting Policy & Procedure Fixed Assets Accounting Policy & Procedure Table of Contents 01. Policy Statement... 2 02. Reason for Policy... 2 03. Roles and Responsibilities... 2 04. Capitalization Policy... 3 05. Classifications

More information

CAPITALIZATION OF PROPERTY, PLANT, AND EQUIPMENT P-415-10 ACCOUNTING MANUAL Page 1 CAPITALIZATION OF PROPERTY, PLANT, AND EQUIPMENT.

CAPITALIZATION OF PROPERTY, PLANT, AND EQUIPMENT P-415-10 ACCOUNTING MANUAL Page 1 CAPITALIZATION OF PROPERTY, PLANT, AND EQUIPMENT. ACCOUNTING MANUAL Page 1 CAPITALIZATION OF PROPERTY, PLANT, AND EQUIPMENT Contents I. Introduction 2 II. Definitions 2 III. Principles 2 IV. Basic Capitalization Framework at UC 3 A. Asset Acquired for

More information

Canadian GAAP - IFRS Comparison Series Issue 8 Leases

Canadian GAAP - IFRS Comparison Series Issue 8 Leases - Comparison Series Issue 8 Leases Both and are principle-based frameworks and, from a conceptual standpoint, many of the general principles are the same. However, the application of those general principles

More information

PRACTICAL GUIDE IAS 17: LEASES

PRACTICAL GUIDE IAS 17: LEASES PRACTICAL GUIDE IAS 17: LEASES www.consultasifrs.com/uk 2014 www.consultasifrs.com 1 ConsultasIFRS is an online firm specialized in advisory on IFRS. PRACTICAL GUIDE IAS 17 Leases Our only goal is to exceed

More information

All staff dealing with fixed assets must comply with the policies and procedures that relate to fixed assets.

All staff dealing with fixed assets must comply with the policies and procedures that relate to fixed assets. Fixed Assets Policy Purpose The purpose of the policy is to define fixed assets, the policy of capitalising expenditure at fair value and effectively controlling such assets (including contributed assets).

More information

Asset Categorization Accounting Section No. 30300 Asset Categorization DATE May 2013

Asset Categorization Accounting Section No. 30300 Asset Categorization DATE May 2013 Table of Contents Overview...2 Introduction...2 Policy...2 Capital Assets Defined...2 Procedures...3 Land...3 Tract Identification Number...3 Buildings...4 Building Identification Number...4 Infrastructure...5

More information

ADMINISTRATIVE PROCEDURE

ADMINISTRATIVE PROCEDURE Categories of Fixed Assets 1. Land -Land as well as the costs incurred in preparing the land for its intended purpose. These costs include, but are not limited to, purchase costs, real estate commissions,

More information

Anchin Real Estate Services Group

Anchin Real Estate Services Group Anchin Real Estate Services Group What is a Capital Expenditure? Marc Wieder, CPA Partner Anchin, Block & Anchin LLP Accountants & Advisors What is a Capital Expenditure? Part 1 The IRS published important

More information

UNIVERSITY OF NEBRASKA CAPITALIZATION POLICY AND DEFINITIONS

UNIVERSITY OF NEBRASKA CAPITALIZATION POLICY AND DEFINITIONS UNIVERSITY OF NEBRASKA CAPITALIZATION POLICY AND DEFINITIONS CAPITALIZATION POLICY AND DEFINITIONS OVERVIEW Asset - Type and Classification Expected /Depreciable Life I. Land II. Buildings A. Buildings

More information

Higher Education Funds Expenditures

Higher Education Funds Expenditures Higher Education Funds Expenditures These guidelines cover the allocation, management, budgeting, expenditures, and related restrictions of Higher Education Funds (HEF), appropriated to Stephen F. Austin

More information

University System of Maryland Capital Asset & Depreciation Guidance

University System of Maryland Capital Asset & Depreciation Guidance University System of Maryland Capital Asset & Depreciation Guidance Prepared by USM Office Final as of June 27, 2002 Introduction The purpose of this document is to provide guidance for the uniform recording

More information

WATER UTILITY REFERENCE MANUAL

WATER UTILITY REFERENCE MANUAL Utility Plant and Accumulated Depreciation Capitalization Policy Costs are capitalized in the utility plant accounts, rather than being expensed in the current year, if: the service life is more than one

More information

$4,000,000 FAMU: $1,000,000. construction,; or renovation projects that add new square footage.

$4,000,000 FAMU: $1,000,000. construction,; or renovation projects that add new square footage. ICOFA GUIDELINES FOR CAPITAL ASSETS - CAPITALIZATION THRESHOLDS The universities financial statements report capital assets in accordance with standards established by the Governmental Accounting Standards

More information

MS 711 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT

MS 711 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT MS 711 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT New Manual Section Responsible Office: OCFO Effective Date: March 29, 2007 Table of Contents Issuance Memo Attachments TABLE OF CONTENTS 1.0 Authorities

More information

KPM CPAs & Advisors Summary of IRS Tangible Property Rules

KPM CPAs & Advisors Summary of IRS Tangible Property Rules The IRS has issued long awaited regulations on the tax treatment of amounts paid to acquire, produce, or improve tangible property. These rules explain when those payments can be immediately expensed and

More information

INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS

INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS STATEMENT OF SFAS No. FINANCIAL ACCOUNTING STANDARD 16 INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS Statement of Financial Accounting Standard (SFAS) No.16, Fixed Assets and Other

More information

Chapter 9. Plant Assets. Determining the Cost of Plant Assets

Chapter 9. Plant Assets. Determining the Cost of Plant Assets Chapter 9 Plant Assets Plant Assets are also called fixed assets; property, plant and equipment; plant and equipment; long-term assets; operational assets; and long-lived assets. They are characterized

More information

Overview. Tangible Property Regulations. Bader Martin, PS Certified Public Accountants + Business Advisors www.badermartin.com

Overview. Tangible Property Regulations. Bader Martin, PS Certified Public Accountants + Business Advisors www.badermartin.com Bader Martin, PS Certified Public Accountants + Business Advisors www.badermartin.com Contents Introduction 2 New Concept: Unit of Property 2 Capitalize Acquisitions and Improvements, Deduct Repairs 3

More information

finreporting.com free online financial services

finreporting.com free online financial services PROPERTY, PLAN, AND EQUIPMENT POLICY PER5PECTIVE Property, Plant and Equipment (PP&E) are those assets including land and buildings, furniture, computer systems, etc., which the company retains more or

More information

INFRASTRUCTURE CAPITALIZATION Chapter 12 INFRASTRUCTURE CAPITALIZATION (GASB 34)

INFRASTRUCTURE CAPITALIZATION Chapter 12 INFRASTRUCTURE CAPITALIZATION (GASB 34) Chapter 12 INFRASTRUCTURE CAPITALIZATION (GASB 34) 12.1 The following section includes excerpts from Governmental Accounting Standards Series, Publication No. 171-A, Statement No. 34 of the Government

More information

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of

More information

JUSTICE INSTITUTE OF BRITISH COLUMBIA

JUSTICE INSTITUTE OF BRITISH COLUMBIA Financial Statements of JUSTICE INSTITUTE OF BRITISH COLUMBIA ABCD KPMG LLP Chartered Accountants Box 10426, 777 Dunsmuir Street Vancouver BC V7Y 1K3 Telephone (604) 691-3000 Telefax (604) 691-3031 Internet

More information

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015)

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015) POLICY 1. Objective To adopt Full Accrual Accounting and all other applicable Accounting Standards. 2. Local Government Reference Local Government Act 1995 Local Government (Financial Management) Regulations

More information

POLICY TITLE: Capitalization of Fixed Assets Policy No.: 700.16 Page 1 of 5

POLICY TITLE: Capitalization of Fixed Assets Policy No.: 700.16 Page 1 of 5 Page 1 of 5 A. Capitalization Policy This policy determines which District-owned and leased assets will be capitalized for purposes of financial reporting and inventory control processes. It is important

More information

Financial Statements of

Financial Statements of Financial Statements of For the year ended March 31, 2015 KPMG LLP Chartered Accountants Telephone (604) 854-2200 32575 Simon Avenue Fax (604) 853-2756 Abbotsford BC V2T 4W6 Internet www.kpmg.ca Canada

More information

College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles

College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles College Accounting Chapter 10 Plant Assets, Natural Resources, and Intangibles 1. HOW DOES A BUSINESS MEASURE THE COST OF A PLANT ASSET? Plant assets are long-lived, tangible assets used in the operation

More information

finreporting.com free online financial services

finreporting.com free online financial services LEASE ACCOUNTING -LESSEE POLICY PERSPECTIVE A Lease is defined as an agreement conveying the right to use property, plant, or equipment (land and/or depreciable assets) for a stated period of time. This

More information

This policy sets forth system-wide standards for financial accounting and reporting of leases.

This policy sets forth system-wide standards for financial accounting and reporting of leases. Accounting for Leases Section: Accounting and Financial Reporting Title: Accounting for Leases Number: 05.281 Index POLICY.100 POLICY STATEMENT.110 POLICY RATIONALE.120 AUTHORITY.130 APPROVAL AND EFFECTIVE

More information

University of Rhode Island. Capitalization. Effective Date: July 1, 2001 Updated: April 2013

University of Rhode Island. Capitalization. Effective Date: July 1, 2001 Updated: April 2013 University of Rhode Island Capitalization Effective Date: July 1, 2001 Updated: April 2013 I. General Background From fiscal 1970 to fiscal 1976, the University of Rhode Island followed the financial accounting

More information

ADMINISTRATION AND FINANCE POLICIES AND PROCEDURES. FIXED & MOVABLE ASSETS ACCOUNTING/INVENTORY CONTROL Revision Date: 01/01/2014 TABLE OF CONTENTS

ADMINISTRATION AND FINANCE POLICIES AND PROCEDURES. FIXED & MOVABLE ASSETS ACCOUNTING/INVENTORY CONTROL Revision Date: 01/01/2014 TABLE OF CONTENTS Chapter 10 ADMINISTRATION AND FINANCE POLICIES AND PROCEDURES FIXED & MOVABLE ASSETS ACCOUNTING/INVENTORY CONTROL Revision Date: 01/01/2014 TABLE OF CONTENTS 10-01 Overview 10-02 Types of Capital Assets

More information

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT Policy: Purchases or acquisitions of property, plant, and equipment shall be properly authorized and accurate records shall be maintained for cost/ acquisition value and accumulated

More information

11.2.004 Operating Expenses are costs incurred for services and/or items with a useful life of less than one (1) year.

11.2.004 Operating Expenses are costs incurred for services and/or items with a useful life of less than one (1) year. FINANCE OFFICE - PROCEDURES MANUAL XI. HIGHER EDUCATION ASSISTANCE FUNDS (HEAF) 11.1 POLICY STATEMENTS 11.1.001 Lamar University is committed to providing sound financial stewardship through accounting,

More information

Property, Plant and Equipment

Property, Plant and Equipment STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 16 Property, Plant and Equipment SB-FRS 16 Property, Plant and Equipment applies to Statutory Boards for annual periods beginning on or after 1 January

More information

Rio Hondo Community College District Measure A General Obligation Bonds Performance Audit July 1, 2012 through June 30, 2013 With Report of

Rio Hondo Community College District Measure A General Obligation Bonds Performance Audit July 1, 2012 through June 30, 2013 With Report of July 1, 2012 through June 30, 2013 With Report of Independent Auditors Table of Contents PAGE REPORT OF INDEPENDENT AUDITORS 1 PERFORMANCE AUDIT Objectives 2 Scope of the Audit 2 Background Information

More information

Sri Lanka Accounting Standard LKAS 16. Property, Plant and Equipment

Sri Lanka Accounting Standard LKAS 16. Property, Plant and Equipment Sri Lanka Accounting Standard LKAS 16 Property, Plant and Equipment CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 16 PROPERTY, PLANT AND EQUIPMENT OBJECTIVE 1 SCOPE 2 DEFINITIONS 6 RECOGNITION

More information

FIXED ASSET PROCEDURES

FIXED ASSET PROCEDURES FIXED ASSET PROCEDURES It is the policy of St. Norbert College to maintain accurate and complete records of Fixed Assets held and to capitalize and depreciate them according to appropriate accounting requirements.

More information

Financial Accounting and Reporting Exam Review. Fixed Assets. Chapter Five. Black CPA Review www.blackcpareview.com Chapter 5

Financial Accounting and Reporting Exam Review. Fixed Assets. Chapter Five. Black CPA Review www.blackcpareview.com Chapter 5 Fixed Assets Chapter Five Black CPA Review www.blackcpareview.com Chapter 5 Objectives: Objective 1: Know which costs associated with the purchase of fixed assets are capitalized Objective 2: Understand

More information

Department of State Treasurer. Policy Manual for Local Governments. Section 20: Capital Assets

Department of State Treasurer. Policy Manual for Local Governments. Section 20: Capital Assets Department of State Treasurer Policy Manual for Local Governments Revision Issued: August 2014 Table of Contents Executive Summary... 1 Part I Introduction... 3 A Purpose and Applicability... 3 B. Functions

More information

Halton Women's Place Financial Statements For the year ended March 31, 2014

Halton Women's Place Financial Statements For the year ended March 31, 2014 Financial Statements For the year ended March 31, 2014 Contents Page Independent Auditors' Report Financial Statements Statement of Financial Position 1 Statement of Changes in Net Assets 2 Statement of

More information

Long-Lived Assets. 1. How the matching principle underlies the methods used to account for long-lived assets.

Long-Lived Assets. 1. How the matching principle underlies the methods used to account for long-lived assets. CHAPTER 9 Long-Lived Assets SYNOPSIS In this chapter, the author discusses (1) accounting for the acquisition, use, and disposal of long-lived assets, and (2) management's incentives for selecting accounting

More information

Accounting for property, plant, and equipment Federal Financial Accounting Standards no. 6

Accounting for property, plant, and equipment Federal Financial Accounting Standards no. 6 Accounting for property, plant, and equipment Federal Financial Accounting Standards no. 6 ************************************************** Federal Accounting Standards Advisory Board (FASAB) ACCOUNTING

More information

NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT

NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT NAS 06 NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT CONTENTS Paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7 14 Initial cost 11 Subsequent cost 12-14 MEASUREMENT AT RECOGNITION

More information

Lease Accounting HARVARD UNIVERSITY FINANCIAL POLICY. Policy Statement. Reason for Policy. Who Must Comply. Procedures

Lease Accounting HARVARD UNIVERSITY FINANCIAL POLICY. Policy Statement. Reason for Policy. Who Must Comply. Procedures HARVARD UNIVERSITY FINANCIAL POLICY Responsible Office: Financial Accounting and Reporting Date First Effective: 7/1/2014 Revision Date: N/A Lease Accounting Policy Statement This policy establishes accounting

More information

Intangible assets other than Goodwill, Business combinations and Goodwill

Intangible assets other than Goodwill, Business combinations and Goodwill Intangible assets other than Goodwill, Business combinations and Goodwill 1.1. Recognition An entity shall apply the recognition criteria stated in Section Concepts and Principles of IFRS for SMEs for

More information

CITY OF COLUMBIA CITY FIXED ASSET AND CAPITALIZATION POLICY

CITY OF COLUMBIA CITY FIXED ASSET AND CAPITALIZATION POLICY CITY OF COLUMBIA CITY FIXED ASSET AND CAPITALIZATION POLICY Adopted by Resolution No. 04-818-R; Amended by Resolution No. 05-854-R Exhibit "A" - Page 1 TABLE OF CONTENTS INTRODUCTION CAPITALIZATION DEFINITIONS

More information

General Ledger Accounts Report

General Ledger Accounts Report General Ledger Accounts Report AcctID 1010 Cash in Bank All funds on deposit with a bank or savings and loan institution, normally in non-interest-bearing accounts. Interest-bearing accounts are recorded

More information

CAPITAL / FIXED ASSET POLICY

CAPITAL / FIXED ASSET POLICY Town of Emerald Isle CAPITAL / FIXED ASSET POLICY Adopted August, 10, 2004 Mayor Arthur B. Schools, Jr. Board of Commissioners Nita Hedreen Robert Isenhour Patricia McElraft Floyd Messer, Jr. John Wootten

More information

Sage Fixed Assets Government accounting for fixed assets. Government Accounting for Fixed Assets GASB guidelines for your organization

Sage Fixed Assets Government accounting for fixed assets. Government Accounting for Fixed Assets GASB guidelines for your organization Government Accounting for Fixed Assets GASB guidelines for your organization 1 Table of contents Government Accounting for Fixed Assets 3 GASB Statement No. 34: depreciating capital assets 4 Defining capital

More information

EHDOC Robert Sharp Towers II Limited Partnership (A Florida Limited Partnership) Financial Report October 31, 2014

EHDOC Robert Sharp Towers II Limited Partnership (A Florida Limited Partnership) Financial Report October 31, 2014 EHDOC Robert Sharp Towers II Limited Partnership Financial Report October 31, 2014 Contents Independent Auditor's Report 1 Financial Statements Balance sheet 2 3 Statement of income 4 Statement of changes

More information

COUNTY OF FLUVANNA ACCOUNTING & FINANCIAL REPORTING POLICIES AND PROCEDURES

COUNTY OF FLUVANNA ACCOUNTING & FINANCIAL REPORTING POLICIES AND PROCEDURES COUNTY OF FLUVANNA ACCOUNTING & FINANCIAL REPORTING POLICIES AND PROCEDURES Consolidation of Capital Expenditures (1.2), Vendor Refunds and Credit Memos (1.3), and Adjusting Journal Entries (1.6) Adopted

More information

Board of Education Policy Findlay City School District FIXED ASSET POLICY

Board of Education Policy Findlay City School District FIXED ASSET POLICY FIXED ASSET POLICY Introduction This document sets forth fixed asset accounting practices for the District. This manual defines fixed assets, presents accounting principles and describes the system s maintenance.

More information

14.1 Tangible Capital Assets

14.1 Tangible Capital Assets Chapter 14: Tangible Capital Assets Policy Statements It is the policy of the Province of Nova Scotia to record, in the accounts of the province, the tangible capital assets controlled by the province.

More information

PINAL COUNTY POLICY AND PROCEDURE 8.8. Replaces Policy Dated: January 12, 1981, and subsequent revisions to date

PINAL COUNTY POLICY AND PROCEDURE 8.8. Replaces Policy Dated: January 12, 1981, and subsequent revisions to date PINAL COUNTY POLICY AND PROCEDURE 8.8 Subject: CAPITAL ASSETS Date: Effective as of July 1, 2009 Pages: 1 of 6 Replaces Policy Dated: January 12, 1981, and subsequent revisions to date Purpose: The purpose

More information

CHAPTER 10 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT

CHAPTER 10 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT CHAPTER 10 ACCOUNTING FOR PROPERTY, PLANT, AND EQUIPMENT 1. INTRODUCTION. a. Background/Authorities. This chapter describes accounting requirements for the acquisition, use, and retirement of property

More information

FIXED ASSET GUIDE. For Financial Reporting Purposes

FIXED ASSET GUIDE. For Financial Reporting Purposes FIXED ASSET GUIDE For Financial Reporting Purposes CAFR Group, State Auditor s Office June 24, 2008 Objective To assist with the accounting for and reporting of the State's assets including new building

More information

Financial Statements. August 31, 2013. Table of Contents

Financial Statements. August 31, 2013. Table of Contents Financial Statements August 31, 2013 Table of Contents Page Independent Auditors' Report 1 Statement of Operations 3 Statement of Changes in Net Assets 4 Statement of Financial Position 5 Statement of

More information

OPERATION BLESSING INTERNATIONAL RELIEF AND DEVELOPMENT CORPORATION AND AFFILIATED ORGANIZATIONS. Combined Financial Statements

OPERATION BLESSING INTERNATIONAL RELIEF AND DEVELOPMENT CORPORATION AND AFFILIATED ORGANIZATIONS. Combined Financial Statements Combined Financial Statements (With Independent Auditors Report Thereon) KPMG LLP Suite 1900 440 Monticello Avenue Norfolk, VA 23510 Independent Auditors Report The Board of Directors Operation Blessing

More information

FASB Emerging Issues Task Force. Issue No. 05-6 Title: Determining the Amortization Period for Leasehold Improvements

FASB Emerging Issues Task Force. Issue No. 05-6 Title: Determining the Amortization Period for Leasehold Improvements FASB Emerging Issues Task Force Issue No. 05-6 Title: Determining the Amortization Period for Leasehold Improvements Document: Issue Summary No. 1 Date prepared: June 6, 2005 FASB Staff: McBride (ext.

More information

A&W Food Services of Canada Inc. Consolidated Financial Statements December 30, 2012 and January 1, 2012 (in thousands of dollars)

A&W Food Services of Canada Inc. Consolidated Financial Statements December 30, 2012 and January 1, 2012 (in thousands of dollars) A&W Food Services of Canada Inc. Consolidated Financial Statements December 30, and January 1, (in thousands of dollars) February 12, 2013 Independent Auditor s Report To the Shareholders of A&W Food Services

More information

International Accounting Standard 17 Leases

International Accounting Standard 17 Leases International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation

More information

P1-19-4-1503 Capital Asset Guidelines Appendix

P1-19-4-1503 Capital Asset Guidelines Appendix P1-19-4-1503 Capital Asset Guidelines Appendix Table of Contents Introduction... 2 Capital Asset Definitions and Guidelines... 2 Capital Asset Classification... 2 Capital Asset Acquisition Cost... 3 Capitalization

More information

Fixed Asset Accounting Policies and Procedures

Fixed Asset Accounting Policies and Procedures Fixed Asset Accounting Policies and Procedures I. Introduction A. Policy Statement B. Reason for Policy C. Who Should Read This Policy II. III. IV. Responsibilities Principles Procedures A. Recording the

More information

CHAPTER 4. 401. General Purpose... 1. 402. Definitions and Capitalization Policies... 1. 403. Budget Procedures... 2

CHAPTER 4. 401. General Purpose... 1. 402. Definitions and Capitalization Policies... 1. 403. Budget Procedures... 2 Kern County Policy and Administrative Procedures Manual CHAPTER 4 CAPITAL ASSET ACCOUNTING Section Page 401. General Purpose... 1 402. Definitions and Capitalization Policies... 1 403. Budget Procedures...

More information

University of Pittsburgh

University of Pittsburgh I. Scope This guideline establishes requirements for the accounting for fixed assets recorded in the University s accounting records that are essential for both financial and government accounting purposes.

More information

Financial Statements. Trade Centre Limited March 31, 2014

Financial Statements. Trade Centre Limited March 31, 2014 Financial Statements Trade Centre Limited MANAGEMENT S REPORT The financial statements have been prepared by management in accordance with Canadian public sector accounting standards and the integrity

More information