If you choose to use asset pools, the acquisition cost of each item in the asset pool would be the average cost of all items in the pool. Otherwise, the total annual costs must be allocated to individual items. However, the comments and the responses to the comments can be provided upon request. We are not aware of the extent of COTS or government information system compliance with the requirements in the draft. Please comment on guidelines for establishing a capitalization threshold.
Much variance exists in determining dollar or sensitivity thresholds.
There is no need to standardize. The capitalization threshold concept is based on materiality. Materiality depends on the particular entity and in some cases the type of asset and surrounding circumstances as well. One threshold would not be suitable for all entities. We develop software products used to provide services to other agencies on a reimbursable basis.