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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Asset Categories
Buildings & Building Improvements

A building is defined as a structure that:

Buildings that are an ancillary part of the state’s highway network (such as rest area facilities and toll buildings) are reported as infrastructure — rather than as buildings.

Building improvements are capital events that materially extend the useful life of a building and/or increase the value of a building. Building improvements are capitalized and recorded as an addition of value to the existing building if the expenditure meets the capitalization threshold.

GAAP determines if demolition costs are capitalized or expensed depending on the following situations:

Buildings designated as historical by the Texas Historical Commission are not depreciated unless used in the operations of the state. But, any improvement not deemed historical by the Texas Historical Commission is depreciated using the same methodology as any other improvement made to a building.