IV.L. Capitalization Policy: Difference between revisions
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==Purpose== | |||
The purpose of this policy is to establish capitalization standards for the Organization in accordance with U.S. generally accepted accounting principles (GAAP). | |||
==Capitalization Threshold== | |||
The Organization capitalizes property and equipment with an acquisition cost of $5,000 or more and an estimated useful life greater than one year. | |||
==Capitalizable Assets== | |||
Capitalizable assets include, but are not limited to, furniture, equipment, computer hardware and software, vehicles, and leasehold improvements. | |||
''[Board Approved 12/8/11 | ==Expensed Items== | ||
Expenditures below the $5,000 threshold or with a useful life of one year or less are expensed as incurred. Routine repairs and maintenance that do not extend the useful life of an asset are expensed. | |||
==Depreciation== | |||
Capitalized assets are recorded at historical cost and depreciated over their estimated useful lives using a method approved by management. | |||
==Asset Records== | |||
All capitalized assets are recorded in the Organization’s fixed asset records and reviewed periodically for impairment or disposal. | |||
==Retroactivity== | |||
In support of our back audit, we need to pass this policy change retroactively, starting June 1, 2019. | |||
''[Updated per Board Approval at Board #2 (02.10.2026)]'' | |||
''[Updated as per Board approval at Board #1 (01.29.2026)]'' | |||
''[Board Approved 12/8/11]'' | |||
[[Category:Section IV - Finances]] [[Category:Policy]] | |||
Latest revision as of 22:46, 10 February 2026
Purpose
The purpose of this policy is to establish capitalization standards for the Organization in accordance with U.S. generally accepted accounting principles (GAAP).
Capitalization Threshold
The Organization capitalizes property and equipment with an acquisition cost of $5,000 or more and an estimated useful life greater than one year.
Capitalizable Assets
Capitalizable assets include, but are not limited to, furniture, equipment, computer hardware and software, vehicles, and leasehold improvements.
Expensed Items
Expenditures below the $5,000 threshold or with a useful life of one year or less are expensed as incurred. Routine repairs and maintenance that do not extend the useful life of an asset are expensed.
Depreciation
Capitalized assets are recorded at historical cost and depreciated over their estimated useful lives using a method approved by management.
Asset Records
All capitalized assets are recorded in the Organization’s fixed asset records and reviewed periodically for impairment or disposal.
Retroactivity
In support of our back audit, we need to pass this policy change retroactively, starting June 1, 2019.
[Updated per Board Approval at Board #2 (02.10.2026)]
[Updated as per Board approval at Board #1 (01.29.2026)]
[Board Approved 12/8/11]
