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 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: This includes gas, electric, HVAC, steam, oxygen, chilled water, compressed air, microwave, fuel oil, and fire protection systems that cannot be directly assigned to a building or structure. Costs of all utilities constructed within a building are capitalized as part of the building. Telephone and Data Communications: This includes the overall system architecture and cabling. Equipment items over the capital threshold of $5,000 (e.g., routers, switches, etc.)