Policies & Procedures



Section: ACT
Part: PRO
Statement No.: 10.1
Date: 04/17/2012
University of North Carolina - General Administration
Administrative Policies and Procedures Manual

Title: Fixed Assets: Threshold for Inventory and 




1.             Determining the amount of an identified fixed asset to be inventoried or capitalized and depreciated:


a.     Asset valued at $5,000 or more must be created, managed, and accounted for in UNC-GA’s Fixed Asset Inventory System.

·         Assets that should be capitalized are:


Ø  Material IT mainframe software (not to be construed with shrink wrapped local desktop software)

Ø  All other assets (8100, 8200, 8300, 8400, 8500) worth more than $5,000

Ø  Exceptions:àare capitalized regardless of amount

o    Buildings (8800)

o    Land (8700)

Ø  Improvements to structures if: (usually extend life of asset)

o    cost is >5,000

o    original cost of asset + improvement >5,000


·         Assets that are not capitalized (exceptions):

Ø  Anything that does not fit the above criteria

Ø  PC software

Ø  Repairs

Ø  Modular furniture priced by the piece that can be assembled in variety of configurations




b.     All assets valued at $5,000 or more must be capitalized and depreciated in UNC-GA’s Comprehensive Annual Financial Report.


   c.     Inventoried cost equals the total purchase price, less any discounts plus any costs incurred to  

           place the asset into service. As an example these costs may include, but are not limited to,

        instillation charges or initial service fees, legal fees or negotiation fees.


d.     If using in-house resources such as labor or materials and supplies, these costs may under certain circumstances be included as part of the cost of the asset. Consult the Fixed Assets Officer before including any of these costs in the inventoriable cost of the fixed asset.


e.     Items purchased may be considered part of another main asset and be collected under that asset in a parent/child relationship. These assets may have additional costs added to the basis in different fiscal years. The new depreciation calculation will takes into consideration this new basis.