(A) The town and its various departments shall classify capital expenditures as capital outlays within the fund from which the expenditure was made in accordance with the chart of accounts of the city and town's accounting manual. The cost of property, plant and equipment includes all expenditures necessary to put the asset into position and ready for use. For purposes of recording fixed assets of the town and its departments, the valuation of assets shall be based on historical cost or by estimation of such costs if historical cost is unknown.
(B) The town's municipally-owned utilities shall record acquisition of fixed assets in accordance with generally accepted accounting principles. When an asset is purchased for cash, the acquisition is simply recorded at the amount of cash paid, including all outlays relating to its purchase and preparation for intended use. Assets may be acquired under a number of other arrangements including:
(1) Assets acquired for lump-sum purchase price.
(2) Purchase on deferred payment contract.
(3) Capital lease agreement.
(4) Exchange of nonmonetary assets.
(5) Issuance of securities.
(6) Self-construction.
(7) Donation or discovery.
(C) An asset register (prescribed Form 211) shall be maintained to provide a detailed record of the capital assets of the governmental unit.
(Ord. 2007-2, passed 2-12-07)