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Procedure: <br /> <br />Valuation of Fixed Assets <br />Fixed assets should be accounted for at cost or if the cost is not practicably determinable, at estimated <br />historical cost. Donated fixed assets should be recorded at their estimated fair market value when <br />received. <br /> <br />Valuations considerations by category of fixed assets include: <br /> <br />Land (Account 9801) <br />If the land is purchased, the valuation includes such costs as purchase price, legal fees, filling <br />and excavation, and other costs directly related to the acquisition of the land and its <br />preparation for use. Rights-of-way and easements are recorded at purchase cost plus legal <br />costs. If land is acquired as a gift (donation), the valuation recorded should be the appraised <br />value at the time of acquisition. Proceeds from the salvaging of any assets removed from the <br />land reduce the land's value. <br /> <br />Buildings and Building Improvements (Account 9820) <br />If purchased or constructed, the valuation of buildings includes such costs as the purchase <br />price, acquisition legal fees, and other professional fees (related to design or construction). If <br />acquired as a gift (donation), the valuation recorded should be the appraised value at the time <br />of acquisition. <br /> <br />Land Ir~provement~ <br />The basis for valuation is the same as for buildings and building improvements. <br /> <br />Equipn~ent, Vehicles and Furnitvre (Account 9860) <br />The basis for valuation of purchased equipment includes the net contract price, transportation <br />charges, and the cost of installing special devices or other preparations required to ready the <br />asset for its intended use. The basis for valuation of donated equipment is the appraised value <br />at the date acquired. <br /> <br />Accgunting for Fixed Assets <br />Fixed assets transactions arrive primarily from acquisitions and disposals of fixed assets. These <br />transactions appear first in the expenditure ledger as purchases. It is important that fixed assets' records <br />be maintained once they have been established. <br /> <br />Fixed Assets' Inventory <br />The existence and condition of all fixed assets should be verified annually by each department. Any <br />discrepancies discovered should be brought to the attention of the Purchasing Agent for correction. <br /> <br />Recordipg Fixed Assets <br />The County may acquire fixed assets by several methods. Possible acquisition methods <br />include: purchase, lease-purchase, installment purchase, construction, eminent domain, tax <br />foreclosures, and gifts (donations). Listed below are the categories in which we record assets in <br />the County. <br /> <br />[,and <br />All land and permanent rights to land (e.§., easements) should be recorded without <br />regard to value. <br />Buildings and Building Improvements <br />All buildin§s should be recorded at acquisition cost without regard to significant <br />value. Additions costing $50,000 or more should be recorded as fixed assets. <br /> <br />Land Improvem~nt~ <br />Improvements other than buildings that cost $50,000 or more should be recorded as <br />fixed assets (e.g., parking lots, sidewalks, and fences). <br />Equipment, Vehicles an~i Furniture <br />Equipment costing $5,000 or more should be recorded as fixed assets. <br /> <br />22 <br /> <br /> <br />