Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Capital Assets
Capitalization Thresholds
Standard capitalization thresholds for capitalizing assets were established for each major class of assets. All agencies are required to use these thresholds.
| Class of Asset | Threshold |
|---|---|
| Land/Land Improvements | 0 (zero) |
| Infrastructure, Non-Depreciable | 0 (zero) |
| Construction in Progress | 0 (zero) |
| Buildings/Building Improvements | $100,000 |
| Facilities & Other Improvements | $100,000 |
| Infrastructure, Depreciable | $500,000 |
| Furniture & Equipment/Vehicles, Boats and Aircraft | See below* |
| Other Capital Assets – Livestock | $5,000 |
| Library Books/Materials (collections) | Various |
| Works of Art/Historical Treasures | 0 (zero) |
| Leasehold Improvements | $100,000 |
| Internally Generated Computer Software | $1,000,000 |
| Other Computer Software | $ 100,000 |
| Land Use Rights – Permanent | 0 (zero) |
| Land Use Rights – Term | $ 100,000 |
| Other Intangible Capital Assets | $ 100,000 |
* The threshold for assets in Furniture and Equipment (SPA AFR Category 4) and Vehicles, Boats and Aircraft (SPA AFR Category 5) are:
- $5,000 for assets placed into service on or before Aug. 31, 2024.
- $10,000 for assets placed into service on or after Sept. 1, 2024.
For more information on capitalization thresholds, see the SPA Process User’s Guide – Appendix A – Class Codes.
For more information on intangible right-to-use thresholds, see the Leases/SBITAs Thresholds.