BACK

 

CAPITALIZATION POLICY FOR FIXED EQUIPMENT  (BP)

 

 

POLICY:III-1-5

DATE OF ADOPTION: October 26, 2000

REVISION DATE(S):   

LEGAL REFERENCE:  

 

Expenditures of $5000 or more will be capitalized if the equipment has a useful life of one year or longer, does not become a component of another piece of equipment when put into use, and is an increase in the stock of equipment.  Capitalized equipment will be included on the fixed equipment inventory and recorded on the Plant General Ledger.  Purchases of equipment costing less than $5000 will be recorded as supplies.