G-4 Capitalization and Depreciation

G-4. CAPITALIZATION AND DEPRECIATION

Value Statement

The College will ensure accountaility and stewardship over its investment in capital assets.

Capitalization and depreciation practices shall comply with generally accepted accounting practices, and shall provide information about the useful lives of physical assets for use in financial planning. Appropriate bond financing shall be used to approximately match depreciation to reinvestment.

All assets with useful lives of more than one year and cost $5000 or more shall be capitalized. Assets shall be depreciated over their estimated useful lives using the straight-line method. Facilities shall be depreciated based on industry-recognized major categories of building components, rather than by the facility as a whole.

The Austin Community College Board of Trustees adopted this policy on May 3, 2004, replacing an old policy on facilities funding with the same number and was amended on August 23, 2007.

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