AG 1998 12 21 - Laserfiche WebLink

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Recording of public domain or infrastructure type fixed assets in the accounting records is optional. This category of fixed assets includes roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and similar assets that are immovable and of value only to the County. Equipment, Vehicles and Furniture A fixed asset account that reflects the value of tangible property not permanently affixed to real property, used in carrying out the operations of the governmental unit. Examples of equipment are machinery, furniture and vehicles. Construction in Progress A fixed asset account that reflects amounts expended on an incomplete building or other capital construction project. When the project is complete, the cumulative costs are transferred to another appropriate fixed asset account. Clarification: Account 860, Equipment and Furniture For the use of Account 860, Equipment and Furniture, two basic requirements must be met: I. The asset must have a useful life that exceeds one (I) year. The asset, one piece of equipment or furniture, must cost $1,500.00 or more. Valuation of Fixed Assets Fixed assets should be accounted for at cost or if the cost is not practicably determinable, at estimated historical cost. Donated fixed assets should be recorded at their estimated fair market value when received. Valuations considerations by category of fixed assets include: Land If the land is purchased, the valuation includes such costs as purchase price, legal fees, filling and excavation, and other costs directly related to the acquisition of the land and its preparation for use. Rights-of-way and easements are recorded at purchase cost plus legal costs. If land is acquired as a gift (donation), the valuation recorded should be the appraised value at the time of acquisition. Proceeds from the salvaging of any assets removed from the land reduce the land's value.