What is a fixed asset?

 
  1. A fixed asset is a capitalized piece of University property, such as:
    1. Buildings with a total acquisition cost of $100,000 or greater and an estimated useful life of two or more years.
    2. Land, general infrastructure, and equipment/furniture with a total acquisition cost of $10,000 or greater and an estimated useful life of two or more years.
  2. Intangible assets with an estimated useful life of two or more years are capitalized if they meet the following thresholds:
    1. Purchased or licensed software, easements, land use rights, patents, copyrights, and trademarks are capitalized when the value or cost is $100,000 or greater
    2. Internally generated software is capitalized when its value or cost is $1,000,000 or greater.
  3. Right-to-use leased assets are capitalized when they cost $1,100,000 or more and have an estimated useful life of more than one year.
  4. Right-to-use subscription assets (SBITAs) are capitalized when they are worth $250,000 or more and have an estimated useful life of more than one year.
  5. Grouped assets are capitalized when similar assets with an individual cost of less than $10,000 are purchased together for a total cost of $120,000 or greater and have an estimated useful life of more than one year.
  6. The acquisition cost of a capitalized fixed asset (except for land and art) is depreciated over the asset's useful life.
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