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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Assets


Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements (GWFS) as required in GASB 34. Capital assets are those defined by the state as assets with an initial cost meeting the thresholds established by the Comptroller’s office and with an estimated useful life in excess of one year. For more information, see Capitalization Thresholds.

In governmental funds, use capital assets adjustments (fund type 11) to record the basis conversion transactions in USAS for the GWFS. The only transactions recorded to governmental funds in USAS related to capital assets are initial purchases or sale of capital assets (cash transactions). All other transactions (such as restatements, transfers, depreciation, amortization and disposals) are recorded in the basis conversion fund type 11.

Report capital asset activity for proprietary funds and discrete component units using the full accrual basis of accounting. Follow the instructions pertaining to business-type activities when recording capital asset activity for proprietary funds and discrete component units.

GASB 51 was implemented in fiscal 2010. This statement clarified questions on the accounting and financial reporting requirements for intangible assets as capital assets.

Glenn Hegar
Texas Comptroller of Public Accounts
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