University of Vermont

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
  • Infrastructure and Land Improvements = 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.

For more capitalization guidance, please click the following:  Capitalization and Depreciation Guidelines, Capitalization Summary Matrix or the detail list of Capitalized Expenditures

Last modified October 17 2015 07:33 AM