GASB Statement No. 34 states that purchased or village constructed capital assets should be reported at historical cost. The total cost of the capital asset is the cash outlay or its equivalent that is necessary to acquire the asset and put it in operating condition. These costs include contract price, freight, licensing fees, handling and assembling, installation and testing, direct labor and material, indirect labor and materials, benefit, and overhead allocations as well as any construction period interest cost as required by GASB Statement No. 34. In addition, it is the village’s policy to capitalize any cost that is specifically identifiable with a planned capital project (or asset acquisition), including public information costs and costs incurred to obtain financing for the project. Contributed capital assets will be recorded at their estimated fair market value at the date of the asset was contribution to the village.
(Ord. 21-02, passed 1-5-2021)