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: They cannot be removed without costly or extensive alterations or repairs to the building. General Improvement: Improvements that cannot be assigned to a building or structure. Construction in Progress (CIP): Accounts are only used at fiscal year-end by Capital Asset Accounting to report the amount of expenditures for projects that are not yet placed in service and ready to be formally capitalized. The capitalization entry for CIP is reversed in the new fiscal year. Procedures
1. Purchased Buildings: All costs associated with the construction or purchase of new buildings and structures (including permanently anchored trailers or modular buildings) should be capitalized. Major and minor capital improvement projects are included as part of the university's Capital Improvement Program.