Summary Budgeting and Reporting

Capitalization Guidelines

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Capitalization Guidelines
Asset Description Capitalization Threshold
($)
Estimated Useful Life
(years)
Land
N/A
N/A
Land Improvements (1)
50,000
10
Buildings - bricks, mortar and steel
50,000
40
Buildings - wood frame
50,000
25
School buses
50,000
10
Vehicles (2)
10,000
5
Equipment (3)
10,000
5
Network Infrastructure (4)
25,000
10
Computer Hardware, Servers & Peripherals (5)
10,000
4
Computer Software (6)
10,000
4
Furniture & Fixtures
10,000
10
Leasehold Improvements
25,000
Over term of lease

NB

All amortization is on a straight line basis with no residual value. The Estimated Useful Life above is based on the acquisition of new assets. If used assets are acquired, a reasonable estimate of the remaining useful life must be determined.

(1)
Includes depreciable improvements to land such as parking lots, bus loops, fences, etc.
(2)
Includes automobiles, trucks, vans, boats, snowmobiles, motorcycles and ATVs.
(3)
Includes all types of equipment and machinery used in day-to-day operations. Also includes security and VOIP systems; and trailers and mobile homes.
(4)
Consists of the costs for fibre optic and wireless networks between sites, including any related development costs and hardware dedicated to data transmission.
(5)
Purchase and installation of personal computers and LAN servers. These are to be capitalized on a workstation approach (e.g. include all components acquired to create a PC workstation and/or a LAN system).
(6)
Costs to purchase and/or design, develop, modify and install a software application are included here. Includes all consultant costs, as well as internal labour costs related to employees dedicated to a software or system development project. Also includes LAN or communications software. Annual license fees and costs related to maintaining the software are not capitalized.