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SPA Process User’s Guide – Chapter 1 – Introduction to Capital Assets

Chapter Sections

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Facilities and Other Improvements

Facilities Definition

Facilities are assets (other than general use buildings) that are built, installed or established to enhance the quality or facilitate the use of land for a particular purpose.

Other Improvements Definition

Other Improvements are enhancements made to a facility or to land.

Depreciation Methodology

The straight-line depreciation method (historical cost minus residual value divided by useful life) is used for Facilities and Other Improvements.

Capitalization Threshold

The capitalization threshold for facilities and other improvements is $100,000.

Examples of expenditures to capitalize as facilities and other improvements