Additions to existing sidewalks, drives, and parking lots should be capitalized in the year completed. Maintenance, partial replacement, and resurfacing projects are to be charged to expense. Equipment Equipment items acquired by the State Colleges will be capitalized at net invoice price plus freight, installation charges, and trade-in allowance, if any. For inventory purposes, all items subject to the capitalization policy should be carried on the equipment inventory maintained by each campus. This equipment should be classified separately due to the rapid obsolescence.
Cost includes net invoice price plus inbound transportation and installation costs.
Warranties and built-in software included as part of the original purchase shall be included in the capitalization amount. The cost of software purchased subsequently should not be capitalized for financial reporting purposes since such software is generally licensed and not owned, even if the license agreement allows perpetual use of the software without additional license payments. Subsequent purchases of warranties shall not be capitalized but entered as operating expenses. Beginning with fiscal year 1995-96, items should be added to this base at actual cost or fair market value. For purposes of this policy, a library is defined as a catalogued collection of materials supervised by a professional librarian.