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(A) The fixed asset policy is issued effective January 1, 2010. The new policy will be referred to as the Capital Asset Policy. This policy is being issued to document the minimum value of capital assets to be reported on our financial reports and to include infrastructure assets. This issuance of a policy document is related to the implementation of a new reporting model, Governmental Accounting Standards Board Statement 34. Statement 34 will require the city to depreciate capital assets. The capital asset threshold will be $5,000. An asset with a value under $5,000 will be expensed in the year of purchase. The definition of "useful life" is the period of time over which an investment is considered to meet its original objective.
(B) City utilities will follow this same definition of capital assets except any item with a unit cost of $5,000 or more shall be capitalized. Assets that are not capitalized (items < $5,000) are expensed in the year of acquisition. City utilities will follow the capitalization guidelines of the Indiana State Board of Accounts.
(Ord. 28, 2009, passed 12-7-2009)