Policy 805.3 - General Fixed Assets / Capital Assets

GENERAL FIXED ASSETS/CAPITAL ASSETS

Items purchased by the Lewis Central Community School District are classified as capital assets if they have a useful life of at least three years and a purchase price of $10,000 or more.

General Fixed Assets/Capital Assets:

Capital assets are recorded as expenditures in the Governmental Funds and are capitalized in the General Fixed Assets Account Group. Assets in this account group are recorded at historical cost, and must have a useful life greater than three years and have a value of at least $10,000. This district will not utilize salvage value in calculating annual depreciation.

In accordance with Standard 34, set forth by the Governmental Accounting Standards Board, depreciation will be recorded for general fixed assets, utilizing the straight-line method with a full-month convention over the following asset lives:

Asset Class Examples Estimated Useful Life 
In Years
Site Improvements Paving, flagpoles, retaining walls, sidewalks, fencing, outdoor lighting. 20
School Buildings 50
Equipment Classroom and office furniture, fax, copiers, computer hardware, grounds equipment. 5
Licensed Vehicles Buses, other on-road vehicles. 7

Enterprise Fund Assets or Business-Type
Enterprise fund type property and equipment is accounted for at historical cost for assets with a useful life greater than one reporting period and with a value of at least $5,000. Depreciation is recorded over 5 years, using the straight-line method. 

Adoption: 07/21/03
Modified: 11/19/07
Reviewed: 06/30/03; 11/05/07; 05/06/13; 07/16/18

Legal Reference: 

Cross Reference:

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