5.01.002 Capitalization

Category: FINANCE FACILITIES AND TECHNOLOGY
Section: FINANCE
Approved: 11/20/2012
Reaffirmed: 11/20/2012
Approved By: Board of Trustees

Background

Beginning with the 2002-2003 fiscal year, the College will be required to meet the reporting requirements of the Governmental Accounting Standards Board (GASB) Statements 34 and 35, “Basic Financial Statements – and Management’s Discussion and Analysis – for Public Colleges and Universities.”  In order to meet these financial reporting requirements, institutional policy for capitalization of assets must be defined.

Fixed Assets

Value of Assets

Depreciation

Useful Life

Guidelines for useful life, based on experience and circumstances (and subject to revision when necessary):

Depreciation expense is recognized for financial statement purposes only.  For budgetary purposes, the full cost of a capital asset is recognized at the time of acquisition.