Title: SPA Process User's Guide – FPP N.005
Headings: SPA Process User’s Guide
–
Chapter 1 – Introduction to Capital Assets

SPA Process User’s Guide –
Chapter 1 – Introduction to Capital Assets
Buildings and Building Improvements
Building Definition
Building Improvement Definition
Building Componentization
Building Construction
Depreciation Methodology
Capitalization Threshold
Examples of Expenditures to Capitalize as Buildings
Purchased Buildings
Constructed Buildings
Examples of Expenditures to Capitalize as Improvements to Buildings
Building Maintenance Expense
Building Demolition Costs

Content: Installation or upgrade of heating and cooling systems, including ceiling fans and attic vents
Original installation/upgrade of wall or ceiling covering (i.e. carpeting, tiles, paneling, parquet, etc.) Structural changes (i.e. reinforcement of floors or walls, installation or replacement of beams, rafters, joists, steel grids, other interior framing, etc.) Installation or upgrade of window or door frame, upgrading of windows or doors, built-in closet and cabinets
Interior renovation associated with casings, baseboards, light fixtures, ceiling trim, etc. Exterior renovation (i.e. installation or replacement of siding, roofing, masonry, etc.) Installation or upgrade of plumbing and electrical wiring
Installation or upgrade of phone or closed circuit television systems, networks, fiber optic cable or wiring required for the installation of equipment that remain in the building
Other costs associated with capitalized improvements
Building Maintenance Expense
These are examples of expenditures not to capitalize as improvements to buildings. Instead, the following items should be recorded as maintenance expense. Adding, removing and/or moving walls relating to renovation projects that are not major rehabilitation projects and do not increase the value of the building
Improvement projects of minimal or no added life expectancy and/or value to the building
Plumbing or electrical repairs
Cleaning, pest extermination or other periodic maintenance
Interior decoration (i.e. draperies, blinds, curtain rods, wallpaper, etc.) Exterior decoration (i.e. detachable awnings, uncovered porches, decorative fences, etc.) Maintenance-type interior renovation (i.e. repainting, touch-up plastering, sink and fixture refinishing, replacement of carpet, tile or panel sections, etc.) Maintenance-type exterior renovation (i.e. repainting, replacement of deteriorated siding, roof, masonry sections, etc.)