What is the difference between a capitalized fixed asset and a non-capital asset?

Capitalized Fixed Asset

  1. A fixed asset is a capitalized piece of University property, such as
    1. 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, or
    2. Buildings with a total acquisition cost of $100,000 or greater and an estimated useful life of two or more years. 

      Exception: Intangible assets, internally generated software, and right-to-use assets. See the FAQ, What is a fixed asset?, for the complete definition.
       
  2. The acquisition cost of a capitalized fixed asset (except for land and art) is depreciated over the asset's useful life.

Non-capital Asset

  1. University property, generally equipment/furniture, with a total acquisition cost under $10,000 and/or an estimated useful life of less than two years.
  2. A non-capital asset is expensed in the year of purchase.

    Office supplies and other supplies have their own range of account codes, separate and distinct from non-capital equipment.

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