Policy: IX.D.14 (inactive)
Issued: July 1, 2002
GUIDELINES FOR CAPITAL ASSETS
This policy has been replaced by Policy II.A.2. http://www.virginia.edu/finance/polproc/pol/iia2.html
This policy describes the general guidelines for capital assets.
2.0 Policy [Top]
Property and buildings are recorded at cost at the date of acquisition. Donated property or buildings are recorded at the estimated fair market value plus ancillary costs, if any, at the time of acquisition.
Maintenance, renovation or acquisition costs of $250,000 or more are capitalized to the extent such expenditures represent a benefit to future periods, prolong the life of an existing asset or otherwise enhance an existing assets' capacity or efficiency to render service. All capital assets are funded from plant fund sources and each capital asset must be linked to an SP and/or LP award(s).
Depreciation of buildings and infrastructure is provided on a straight-line basis over estimated useful lives of 15 to 50 years.
3.0 Definitions [Top]
Cost of property or buildings include capitalized interest and ancillary charges necessary to place the asset into its intended location and condition for use. Ancillary charges include costs that are directly attributable to asset acquisition- such as site preparation costs and professional fees.
Capital asset as used in this policy includes land, improvements to land, easements, buildings, building improvements and infrastructure.
Infrastructure assets are long-lived assets that normally are stationary and can be preserved for a significantly greater number of years than most capital assets. Examples include roads, drainage systems, water and sewer systems.
4.0 References [Top]
UVA Financial and Administrative Procedure 9-44 -- Creating Capital Asset Projects
GASB 34 Implementation Guide
5.0 Approvals and Revisions [Top]