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Cost Accounting Services

Cost Accounting Standards Fixed Assets Accounting Overview

University of Vermont capital assets are considered fixed assets and are recorded at cost or, in the case of gifts, at the fair value at the date of donation in the Capital Assets (Fund 50X) section of the University's general ledger. Interest expense, net of interest earnings on unspent bond proceeds is capitalized for debt funded construction projects and added to the appropriate capital asset(s).

The major classifications of fixed assets at the University are:

Real Property

  • Land
  • Buildings
  • Infrastructure and Land Improvements

Institutional Personal Property

  • Movable Equipment
  • Software Systems

Depreciation is calculated using the straight-line method over the estimated economic useful lives of the related assets. The economic useful lives of the different asset classes are:

  • Building (basic construction components/shell) =  40 years;
  • Building service systems (plumbing, electrical, etc.) =  25 years
  • Building interiors/renovations =  20 years
  • Fixed equipment = 15 years.
  • Software systems = 7 years
  • Movable Equipment = 5 years
Major construction projects are capitalized, but are not depreciated until they are put into service.



Last modified February 02 2012 06:43 AM

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