General capital assets should be classified in the appropriate account code to indicate the type of fixed asset owned.
General capital assets should be classified by type within the following major classifications and depreciated or amortized over the indicated estimated useful lives:
| Land | no depreciation |
| Land Improvements | 12-30 years |
| Land Preparation-Roads | no depreciation |
| Land Easements-Intangible | 20 years |
| Buildings | 12-60 years |
| Machinery and Equipment | 4-30 years |
| Library Books | no depreciation |
| Computer Software-Intangible | 10-12 years |
| Construction in Progress | no depreciation |
| Infrastructure | 20-75 years |
A renovation is a project performed on an already existing component while an improvement is the addition of a new component where one did not previously exist.
Renovations will be recorded within the capital asset system as a capital asset addition if they meet the following criteria:
- The renovation costs more than $100,000
- It occurs when 75% or more of the estimated useful life of the component has expired
- It extends the useful life of the component being renovated
The original component being renovated will be retired if the actual cost of the renovation is 75% or more of the current replacement cost of the component being renovated.
To be considered a general fixed asset, an improvement must:
- Cost over $100,000
- Have a useful life of two years or more
Guide to Financial Operations
REV. 09/16/2023