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Finance will identify assets which meet the threshold for capitalization through monthly month end 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.
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Tagging an asset
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 a the requestor from the RFP will receive an email from General Ledger 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.
Capital equipment is not expensed at the time of purchase and will instead be recognized as a Fixed Asset over its UEL (capitalized).
The General Ledger Team is responsible for maintaining the Fixed Asset Register. Each department is responsible for safeguarding, maintaining and utilizing all equipment it acquires.
DepreciationAccounting for Fixed Assets.
Fixed assets are depreciated (expensed) based on the UEL belowAssets are not expensed at the time of purchase. Depreciation will be expensed annually based on an Assets' UEL:
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 Depreciateddepreciated | 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. |
LandN/A | Not depreciated. | Land as recorded as a Fixed Asset but is not depreciated. |
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