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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Table of Contents

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Asset Accounting
Capital Asset Acquisition Cost

Report and record capital assets at their historical costs. Historical costs include:

Incidental charges (such as extended warranties, maintenance agreements, additional parts or consumable items) are no longer considered part of the asset cost.

Example:

Asset Cost
Capital Asset $ 10,000
Trade-in 2,000
Installation Cost 250
Freight/Transportation 300
Total Cost of Asset $ 12,550

Note: For more information regarding incidental charges, see the Note and the If/Then table under Capital Asset Acquisition Cost in Chapter 1 of the SPA Process User’s Guide.

The costs of capital assets for governmental activities do not include capitalized interest; however, interest is capitalized on:

Assets that do not qualify for capitalization of interest:

Disclose the following information (as required by GASB 62, paragraphs 3a and 22) in CANSS regarding to interest costs for qualifying assets for both business-type and component unit activities: