Stevensville School District
FINANCIAL MANAGEMENT
Capitalization Policy for Fixed Assets
A fixed asset is a property that meets all the following requirements:
- Must be tangible in nature;
- Must have a useful life of longer than the current fiscal year; and
- Must be of significant value.
Fixed assets may be acquired through donation, purchase, or may be self-constructed. The asset value for a donation will be the fair market value at the time of donation. The asset value for purchases will be the initial cost plus the trade-in value of any old asset given up, plus all costs related to placing the asset into operation. The cost of self-constructed assets will include both the cost of materials used and the cost of labor involved in construction of the asset.
The following significant values will be used for different classes of assets:
Class of Fixed Asset Significant Value
Equipment and machinery $5000.00 or more
Buildings – improvements $5000.00 or more
Improvements other than to buildings $5000.00 or more
Land Any amount
Cross Reference:
7500 Property Records
Policy History:
Adopted on: February 12, 2002
Reviewed on: November 11, 2014
Revised on: December 17, 2001