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Finance will identify assets which meet the threshold for capitalization through monthly invoice review and record these on the Fixed Asset Register. A representative from the Finance Team will reach out to you, if needed, to gain clarification as to whether an asset meets the definition of a Fixed Asset.
When If an item you have is identified
Donated assets should be disclosed to University Advancement Services. Advancement will communicate the need to add the asset to the Fixed Asset Register on an annual basis.
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Fixed assets are depreciated (expensed) based on the UEL 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. The GL Team will need all lease information available. |
Machinery & Equipment | 10 | Devices, audiovisual, computers, machines, equipment meeting the definition of a Fixed Asset. |
Vehicles | 10 | Cars, motorized carts, or any other vehicle meeting the definition of a Fixed Asset (bought or leased). |
Library Books | 20 | Any purchase of a set of library books meeting the definition of a Fixed Asset. |
Furniture & Fixtures | 10 | Furnishings such as seats, couches, desks, tables, whiteboards, display sets, etc. whose cumulative purchase meeting the definition of a Fixed Asset. |
Musical Instruments | 10 | Any musical instruments bought and owned by the University meeting the definition of a Fixed Asset. |
Artwork | 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 as recorded as a Fixed Asset but is not depreciated. |
Depreciation is recorded annually.
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