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Additions to Capital Assets Subject: Additions to Capital Assets Policy:
 | All additions to capital assets should be properly authorized |
| Capital assets include property, plant and equipment assets having an estimated useful life of at least two (2) years following the acquisition date |
| Capital assets should be reported at historical cost. The cost of a capital asset should include capitalized interest and ancillary charges necessary to place the asset into its intended location and condition for use |
| Items with useful lives less than two (2) years or of small monetary value (less than $5,000 per unit cost) are reported as an expense or expenditure in the period in which they are acquired |
| Control over non-capitalized capital-type items is maintained by adequate control procedures at the department level |
General: Property, plant and equipment are generally categorized by the following broad asset types:
Asset Type | Estimated Useful Life |
| Capital leases |
| Mains and extensions |
| Land |
| Buildings |
| Autos and equipment |
| Furniture and equipment |
|
| Lease term |
| 10-65 years |
| Inexhaustible |
| 10-15 years |
| 3-10 years |
| 3-10 years |
|
Responsibility | Action | Accounting Department |
| Record additions of capital assets in the detailed fixed asset sub-ledger |
| Reconcile the detailed fixed asset sub-ledger to the general ledger. |
| Investigate and resolve differences found in the reconciliation. |
| Procedure Coordinator: Director of Finance |
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