| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Depreciation of Capital Assets |
| SOURCE: |
Financial Management Support, Financial Accounting Standard Board (FASB)Statement 96, Governmental Accounting Standards Board (GASB) Statement 8
|
| DATE ISSUED: |
July 1992, Revised January 1996 |
| POLICY NO.: |
I-180 |
| RATIONALE: |
To convey the application of the accounting concept of depreciation for the university.
|
| POLICY: |
Effective July 1, 1990, Indiana University will depreciate the capital asset categories of moveable equipment, buildings, infrastructures, leasehold equities, library books and equipment start up costs.
|
| DEFINITIONS: |
Depreciation is a financial recognition of the diminishing service capacity or utility; the lost usefulness; the wasting away of a tangible asset during the periods of service life. |
| PROCEDURE REFERENCE: |
The calculating and applying of the value decreases are the responsibility of the Financial Management Support department.
Detailed depreciation will be maintained in the Capital Asset Management System (CAMS).
|
| CROSS REFERENCE: |
See Accounting Administration Policy I-150 through I-250 for capitalization on assets.
|
| RESPONSIBLE ORGANIZATION: |
Financial Management Support |
