Difference between revisions of "CAS 404 - Capitalization of Tangible Assets"
From Knowledge base
Line 1: | Line 1: | ||
== Purpose == | == Purpose == | ||
− | To facilitate the measurement of costs associated with tangible assets consistently over time. | + | To facilitate the measurement of costs associated with tangible assets consistently over time. |
+ | |||
+ | ==Definitions== | ||
+ | [[Asset Accountability Unit]] | ||
+ | |||
+ | [[Original Complement of Low Cost Equipment]] | ||
+ | |||
+ | [[Repairs and Maintenance]] | ||
+ | |||
+ | [[Tangible Capital Asset]] | ||
== Requirements == | == Requirements == |
Revision as of 08:11, 2 October 2013
Contents |
Purpose
To facilitate the measurement of costs associated with tangible assets consistently over time.
Definitions
Original Complement of Low Cost Equipment
Requirements
Contractor must establish reasonable and consistently followed policy. The policy shall designate economic and physical characteristics for capitalization of tangible assets. Policy must come within the following guidelines:
- Minimum service life, which shall not exceed 2 years, but may be a shorter period;
- Minimum acquisition cost criterion which shall not exceed $5,000 but which may be a smaller amount.
- Contractor may designate other specific characteristics pertinent to capitalization policy.
- Contractor’s policy shall provide for identification of assets to the maximum extent practical.
- Costs incurred which result in extending the life or increasing the productivity of an asset and meet the criteria of the capitalization policy shall be capitalized. (Repair and maintenance are period costs.)
Applicability
Applies under full coverage only. 48 CFR 9904.404