AG 1998 12 21 - Laserfiche WebLink

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Subject: Purpose: Policy: Fixed Assets To define the criteria for determining fixed assets for the County. A fixed asset is tangible in nature and has a useful life longer than one (I) year. A fixed asset is classified as land, land improvements, buildings, furniture and equipment, and vehicles and motorized equipment. It is the County's policy that items of insignificant value or value less than $1,500.00 are normally expensed instead of being considered a fixed asset. Local governments and public authorities are required by NC General Statute 159-26(b)(8) to maintain "a ledger of group of accounts in which to record the details relating to the general fixed assets of the unit or public authority." Classification of Fixed Assets Fixed assets owned by the County should be recorded in the accounting records. Accounting classifications of fixed assets are as follows: Land A fixed asset account that reflects the value of land and the rights to land owned by the governmental unit. It includes all land held in fee simple and all rights to land that has no termination date. Buildings and Building I.mprovements A fixed asset account that reflects the acquisition value of permanent structures owned by the County used to house persons and property. Permanently installed fixtures to or within these structures are considered parts of the structures. The costs Of major improvements to structures are included in this account. Land Improvements A fixed asset account that reflects the acquisition value of permanent improvements (other than buildings) that add value to the land or improve the use of the land. Examples of such improvements are: fences, retaining walls, draining systems, sidewalks, parking lots and driveways (Note that when used with fixed assets, the terms "improvement" and "betterment" have different meanings. "Improvements" are fixed assets permanently attached to the land. "Betterments" are additions to or changes in existing depreciable assets intended to increase their efficiency or prolong their useful lives.)