Capitalization of Assets
Accounting and Financial Reporting
View policy pdf:Capitalization of Assets Policy
Policy Statement
The University follows University System of Georgia capitalization policy as outlined
in the Business Procedures Manual. A link to the capitalization section of the USG
Procedures Manual can be found under Related Information. This policy details various
items related to capitalization, including:
Asset Category Definitions
Capitalization Thresholds
Depreciation Methodologies
Examples of Expenditures for Each Class of Asset
Guidelines for Leasehold Improvements, Impaired Assets, Intangible Assets and Construction
in Progress
Reason for policy
The University is required to comply with reporting requirements under Governmental
Accounting Standards Board (GASB) Statements No. 34 and No. 35, Basic Financial Statements
and Management’s Discussion and Analysis for State and Local Governments and Public
Colleges and Universities.
Additional Contacts
University of Georgia Asset Management Office
Definitions
Capital Assets–Real or personal property that has a value equal to or greater than the capitalization
threshold for the particular classification of the assets and has an estimated life
of greater than one year.
Related Information
Responsibilities
Responsible University Senior Administrator: Vice President for Finance & Administration
Responsible University Administrator: Finance Division
Policy Owner: Controller
Phone Number: 706-542-1197
Date Issued: 02/17/2017
Last Reviewed/Updated: