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Note that these purchases will not be expensed at the point of purchase, but over the useful lives of the assets.
Asset Tagging
An imperative control over fixed assets is physical tagging of any depreciable assets meeting the $5,000 dollar value threshold belonging to any category of property, plant & equipment. Each month, when the GL Accounting team prepares the reclass journal entry to move the expensed invoice balance to the appropriate fixed asset account, the requestor from the RFP will receive an email from General Accounting to affix a physical tag to the asset to be tracked centrally on the fixed asset schedule maintained by the GL Accounting team.
It will be the responsibility of the department requesting payment for the asset to maintain physical control of the asset and its tag.
Useful Life Schedule
Refer to the Useful Life schedule below:
Asset Category | Useful Life (years) | Description | ||
---|---|---|---|---|
Buildings | 30 | Physical structure owned by the University | ||
Building Improvements | 30 | Permanent improvements made to buildings owned by the University | ||
Right-of-Use Lease Asset / Liability | Lease Term | Ensure any lease signed (including, but not limited to buildings, equipment, machinery, etc.) is sent to generalledger@spu.edu. Recent accounting pronouncements impose additional reporting requirements that the GL accounting team will need all lease information available. | ||
Machinery & Equipment | 5 - 10 | Devices, audiovisual, computers, machines, equipment exceeding the dollar threshold to be described and depreciated over an estimated Useful Life. | ||
Vehicles | 10 - 15 | Cars, motorized carts, or any other vehicle exceeding the dollar threshold (bought or leased) | ||
Library Books | 20 | Any purchase of a set of library books beyond the dollar threshold | ||
Furniture & Fixtures | 5 - 10 | Furnishings from seats, couches, desks, tables, whiteboards, display sets, etc. whose cumulative purchase exceeds the dollar threshold | ||
Musical Instruments | 10 | Any musical instruments bought and owned by the University | ||
Artwork | Case-by-case | Decorative goods exceeding the dollar threshold | Not Depreciated | Pursuant to ASC 958-360-35-3, artwork need not be capitalized, and an election is available to treat as artwork fixed assets similar to land. |
Land | N/A | Land belongs to Fixed Assets (Property, plant and equipment) but is not depreciated. |