University System of Georgia (USG) Capital Asset Guide - Capital Asset Classification:
Assets purchased, constructed, or donated that meet or exceed the University System’s established capitalization thresholds or minimum reporting Requirements must be uniformly classified in conformity with the Business Procedures Manual.
Capital assets should be recorded and reported at their historical costs, which include the vendor’s invoice (plus the value of any trade-in), plus sales tax, initial installation cost (excluding in-house labor), modifications, attachments, accessories or apparatus necessary to make the asset usable and render it into service. Historical costs also include ancillary charges such as freight and transportation charges, site preparation costs and professional fees.
Standard capitalization thresholds for capitalizing assets have been established for each Asset Category. All state organizations are required to use these thresholds.
Class of Asset Threshold
|Land/land improvements||Capitalize All|
|Improvements other than buildings||$100,000|
|Personal property (equipment/furniture/vehicles/leased equipment)||$5,000|
|Library books/materials (collections)||Capitalize All|
|Works of art/historical treasures||Capitalize All|
|Software developed or obtained for internal use||$1,000,000|
|Capital Leases – Buildings||$100,000|