Capital and Non-Capital Assets

Policy Statement

Capital Assets are defined as tangible items used at the College that are of a permanent or relatively fixed nature with useful lives in excess of one year. These assets are Land, Land Improvements, Building, Building Improvements, Equipment, Furniture, and Vehicles.

The guidelines for capitalization, and depreciation is as follows:

• Land - all purchases will be capitalized and will not be depreciated.
• Land Improvements - expenditures of $25,000 and above will be capitalized and depreciated over a life of 10 to 20 years. 
• Buildings - all purchases will be capitalized and depreciated over a 40 to 60 year life.
• Building Improvements - expenditures that extend the life of the building with a minimum cost of $25,000 will be capitalized and depreciated over a 40 to 60 year life.
• Equipment(not technological in nature), Furniture - expenditures of $5,000 and above will be capitalized and depreciated over a 5 to 10 year life.
• Technology equipment - expenditures of $5,000 and above will be capitalized and depreciated over a 3 to 5 year life. 
• Software - expenditures of $10,000 and above will be capitalized and depreciated over a 3 to 5 year life.
• Vehicles - expenditures of $5,000 and above will be capitalized and depreciated over a 3 to 5 year life.

Change Log

07-01-2018  Effective date