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Capitalization of InfrastructuresFIN-ACC-I-210


All Indiana University units and employees. 

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Policy Statement

Improvements on land that have a life of their own exclusive of the land or building(s) on that land should be capitalized in this category. The cost of the project must be greater than $75,000 for it to be capitalized.

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Reason for Policy

To define expenditures which will be classified as capital infrastructures.

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In order for an item to be secured as a capital infrastructure, the correct object code should be utilized on the Purchase Order and disbursement documents.

All capitalized building projects should be processed through a construction account or renewal and replacement account and should not be recorded in an operating account. Any federal funds used should be allocated to the correct disbursement object code.

A list of the current object codes (income and expense classes) is available by contacting your campus Chart of Accounts Manager or the Kuali Financial System's Object Code References Tables.

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Infrastructure: It covers improvements related to land but not associated to buildings. Infrastructure expenditures have a life exclusive of a building. The infrastructure category of capital fixed assets include sidewalks, outside lighting, steam pipes, maintenance tunnels and sewer systems.

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This policy was established on July 1, 1992.

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