Capitalization Policy Sample Clauses
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Capitalization Policy. Owner’s policy is to capitalize all lease commissions in excess of $1,000 and for lease terms of greater than one year. Additionally, any single expenditure for a capital asset which equals or exceeds $5,000 should be capitalized. Any capital expenditure, regardless of amount, relating to a project where total project costs equal or exceed $5,000, should also be capitalized. Please pay close attention to the definition of a capital asset in the capitalization policy. Capital Expense: All types of capital expenditures shall be recorded on a schedule and submitted with the Monthly Financial Reports package. The “Capital Expenditures” form within the Accounting section of the Documents and Forms shows an example of how building improvements and tenant improvements should be listed. Record in detail the monthly expenditures by project or tenant, as applicable. The estimated project cost should agree with the amount budgeted or the amount per the lease proposal. Construction in progress accounts should be used for long-term construction projects until complete to reduce the potential of calculating depreciation on accrued capital or incomplete projects. The total paid per month should agree with the monthly accounting report. Copies of invoices should accompany the capital schedules for all entries made to these accounts. Please note on the schedule the month in which a project is completed. A project is considered complete when the improvement is first put in a state of readiness and is available for a specifically assigned function. Refer to the Capitalization Policy section above for further explanation on what can be capitalized.
Capitalization Policy. The program shall implement a written capitalization policy which shall state: • A capitalization threshold established by the program; and • Whether the threshold applies to individual or aggregate purchases.
Capitalization Policy. 3.9 During- the term of this Agreement, when changes occur to existing Department written instructions, Administrative Rules, courses or curriculum that are determined to be relevant to the operation of the secure prison, the Department shall, via the Department Monitor, notify CSC in writing.
Capitalization Policy. The cost threshold for items purchased by FLACS to capitalize is $1,000. This allows items over this cost threshold to carry value over time, and not simply be expensed in year one. Items with an acquisition cost of less than $1,000 or a useful life of less than one year are expensed in the year purchased. Items with an acquisition cost of more than $1,000 are subject to the school’s depreciation policy, outlined below. In instances where a large quantity of one single item is purchased, if the total value exceeds the $1,000 threshold, the items may be capitalized. For example, if a school buys 100 desks at $250 per desk, each single item would not meet the threshold. Together, however, these 100 desks have a combined value of $25,000, which should be capitalized over a 5-year period, as outlined in the Depreciation Policy table below. The CFO and the Controller perform annual inventory audits, verifying and updating the data contained in the Excel fixed asset inventory spreadsheet. Once complete, the CFO and the Controller compare this inventory to the fixed assets listed in the general ledger to ensure the value of the assets per the accounting system matches the value of the assets per the spreadsheet. Differences are investigated, reconciled and recorded by the Finance Department.