Title: Capitalization Policy and Depreciation Policy for Capital Assets
Headings: 
Asset Valuation
Asset Salvage Value
Asset Classification
General Policy for Capitalization
Land Acquisitions
Buildings/Facilities
Building Renovations/Rehabilitation
Building Improvements
Land Improvements and Infrastructure
Equipment
Leased Equipment and Facilities
Capitalized Interest Costs:
Intangible Assets
Library Books
Artwork and Historical Treasures
Construction in Progress (CIP)
Depreciation
Information Needed to Calculate Depreciation
Estimated Useful Life
Depreciation Method
SUNY Useful Life Schedule
Building and Building Components:
Capital Equipment, Furniture, Fixtures, etc.:
Asset Retirement
Accounting for Environmental Remediation:

Content: Original contract price of asset acquired or cost of design and construction
Expenses incurred in remodeling, reconditioning, or altering a purchased building to make it available for the purpose for which it was acquired. Expenses incurred for the preparation of plans, specifications, blueprints, etc. Cost of building permits
Payment of noncurrent taxes accrued on the building at date of purchase, if payable by purchaser
Architects’ and engineers’ fees for design and supervision
Costs of temporary facilities used during the construction period
Each building or addition of square footage to an existing building acquired or constructed is divided into 10 major building components. The components are as follows: General construction
Site preparation (this component is classified as land on the financial statements)
Roof and drainage
Interior construction
Plumbing
Heating, ventilation, and air conditioning
Electrical
Fire protection
Elevators
Miscellaneous
The total cost of the building or additional square footage is then allocated among the 10 major building components. Projects such as building construction included in the fixed asset value of the building, the cost of professional fees (architect and engineering), permits and other expenditures necessary to place the asset in its intended location and condition for use should be capitalized. Furthermore, the cost of interest incurred during building construction should be capitalized as described below under capitalized interest costs. Building Renovations/Rehabilitation
A building renovation is defined as enhancements made to a previously existing building component. Any renovation to a building must at a minimum meet the following criteria to qualify as a fixed asset: The total project cost must be more than $100,000
The renovation must extend the useful life or capacity of the asset
Building Improvements
An improvement to a building is defined as adding a new component where one did not previously exist.