Title: Accounting for Buildings & Improvements | Finance & Business
Headings: Accounting for Buildings & Improvements
Accounting for Buildings & Improvements
Guidance on establishing when costs for buildings and improvements must be capitalized at the university.
Procedures
1. Purchased Buildings:
2. Construction and Improvements:
3. Fixed Equipment
4. General Improvements

Content: Fixed equipment does not include: Permanent coverings (such as paneling or tiling),
Central air conditioning and heating systems,
Plumbing and plumbing fixtures (such as sinks and bathtubs),
Electrical wiring and lighting fixtures, escalators, elevators, or sprinkler systems. These items are building components. In addition, capital moveable equipment should not be included in fixed equipment. As a general rule, equipment will not be considered permanently fixed to the structure if it can be removed without costly or extensive alterations or repairs to the building and if the space it occupies could be readily used for other purposes. Fixed equipment costs of $35,000 or more that are associated with improvements or alterations in existing buildings should be capitalized. Fixed equipment costs that are identified separately should be assigned the same CAAN as the building in which the equipment is attached. 4. General Improvements
Are improvements that cannot be assigned to a building or structure including: Utilities Systems: