Where difference in the wording of definitions exist with other sources, the definitions provided in this policy volume take precedence. Capital assets are either owned or acquired through purchase. Also included are capital assets, leases or rental agreements that transfer the rights and obligations of ownership to the Crown. For real property, the asset includes any right, interest or benefit in land, and includes mines, minerals and improvements on, above or below the surface of the land. Capital assets exclude inventories consisting of physical assets that are either held for issue or whose economic benefit is consumed over a short period of time after they are brought into use, as well as spare parts and consumable items.
Acquisition includes the design, development, construction or purchase of capital assets.
Improvements include any alterations or renovations that significantly increase the performance, value or capability of a capital asset or extend its useful or economic life by more than a year. The commissioning documents normally include an agreed listing of operational and maintenance deficiencies, together with an agreed plan for clearing up these deficiencies. This is an estimate expressed in terms of the dollars of a particular base fiscal year-that is , it includes no provision for inflation. Cash flows over a number of fiscal years may also be expressed in constant dollars of the base year including no allowance for inflation in the calculation of costs. For purposes of the policies contained in this volume, the contracting authority is the department or common service organization exercising the powers of its minister to enter into contract.