- Responsible Department: Business Affairs – Accounting Department
- Approving Body: President/Cabinet
- Effective Date: 15-DEC-2014
- Review/Revision Date: 12-SEP-2024
PURPOSE:
To recognize the appropriate capitalization for newly constructed buildings, renovations and land improvements.
POLICY:
Upon the completion of any new building, the total construction amount will be capitalized and depreciated over a 25-year period.
Renovations will be capitalized separately from the initial building and depreciated over a 25- year period. Major renovations are those for which the institution has received a separate appropriation from the state legislature and those which significantly extend the life of the building with a cost equal to or greater than $50,000.
Costs associated with land improvements will be capitalized and depreciated over a 25-year life if the cost is equal to or greater than $50,000.