CapitalizationPolicy-Accounting-UniversityofNebraska.docVIP

UNIVERSITY OF NEBRASKA CAPITALIZATION POLICY AND DEFINITIONS CAPITALIZATION POLICY AND DEFINITIONS OVERVIEW Asset - Type and Classification Expected /Depreciable Life I. Land II. Buildings A. Buildings and Structures 50 years III. Land Improvements A. Infrastructure 30 years B. Landscaping Improvements 20 years IV. Equipment and Chattel Property A. All Equipment and Chattel Property Not Specifically Defined in 2 -10 years Other Classifications B. Autos, Vans, and Passenger Vehicles 3 years C. Trucks, Busses, and Cargo Vehicles 8 years D. Computer Mainframe Installation Equipment 5 years E. Personal Computers, Modems, Printers, Displays 3 years F. Computer Software 3–5 years G. Equipment Systems Comprised of Several Components -- H. Livestock -- I. Leases -- V. Construction Work in Progress VI. Capitalized Interest I. LAND Land will be capitalized at acquisition cost including assessments, commissions, legal and recording fees; draining, filling, other site preparation costs; judgments levied from damage suits; and demolition cost of structures on land acquired by building sites. Land acquired by gift will be capitalized at fair value on date of donation. Acquisition cost of property, which includes structures not to be razed, will be allocated between land and buildings based on appraised values. II. BUILDINGS A. Buildings and Structures Buildings will be capitalized and depreciated using the straight-line method with an expected life of 50 years except for the University of Nebraska-Lincoln (UNL) campus. UNL has adopted a straight-line, componentized method to depreciate buildings based on an estimated useful life of 25 to 40 years and for the University of Nebraska Medical Center (UNMC) campus has adopted a straight-line, componentized method to depreciate selected research buildings based on an expected life o