A fixed asset is a property that meets all of the following requirements.
- Must be tangible in nature.
- Must have a useful life of at least 24 months.
- Must be of significant value.
Fixed assets may be acquired through donation, purchase or may be self-constructed. The asset value for donations will be the fair market value at the time of the donation. The asset value, when purchased, 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 materials used and the cost of labor involved in the construction of the asset.
The following significant values will be used for different classes of assets:
Classes of Fixed Asset Significant Value
- Equipment and machinery $5000.00 or more
- Buildings - Improvements $5000.00 or more
- Improvements other than buildings $5000.00 or more
- Land, any amount.
Cross Reference:
7500 Property Records
Policy History:
Adopted on: September 16, 2004
Revised on: