Capitalization of Infrastructures
FIN-ACC-210
About This Policy
- Effective Date:
- 07-01-1992
See current policy
- Date of Last Review/Update:
- 07-01-2002
- Responsible University Office:
- Capital Assets
- Responsible University Administrator:
Vice President and Chief Financial Officer
- Policy Contact:
Jennifer George
Director of Auxiliary Accounting, Capital Asset Management, Non-Student Accounts Receivable, and Student Loan Administration
jmabry@iu.edu
- Policy Feedback:
- If you have comments or questions about this policy, let us know with the policy feedback form.
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.
Reason for Policy
To define expenditures which will be classified as capital infrastructures.
Procedures
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.
Definitions
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.
Please note: This is an archived version of the policy. View the current version.