802.04 - Capitalization Policy

The Governmental Accounting Standards Board has ruled that effective with the 2003-04 school year, the Bennett Community School District must implement GASB Statement 34 to determine the capitalization and depreciation policies for capital assets in accordance with GAAP.  The Bennett School will adhere to the following capital assets requirements:

Major Classes – Land, Land Improvements, Buildings, Equipment & Vehicles, Nutrition Equipment, and Construction in process.

               Description

               Year of Acquisition

               Method of Acquisition – Donated, purchased, or grant

               Funding Source

               Purchase Cost

               Salvage Value

Straight Line Depreciation – The capitalization threshold is 80% of the value of all fixedassets.  Items on the annual moveable equipment inventory, with a purchase value of $2,500.00 and above per unit, will be captured for depreciation.

            Useful Lives        Buildings 50 years

Site Improvement 20 years

                                              Equipment 5 years

                                              Vehicles 7 years

                                              Nutrition Equipment 12 years

 

 

Approved:  3-14-05
Reviewed:  12-11-23            
Revised: