The Fixed Assets department is responsible for establishing and maintaining accurate records of fixed assets at all locations within Marion County School District.
What are Fixed Assets?
The definition of a fixed asset is an item that:
- Under normal conditions of use, including reasonable care and maintenance, has an anticipated useful life of more than one year.
- Is of significant value.
- Retains its original shape and appearance with use.
- Is nonexpendable; that is, if the item is damaged or some of its parts are lost or worn out, it is usually more feasible to repair it than to replace it with an entirely new unit.
- Does not lose its identity through incorporation into a different or more complex unit or substance.
For an item to be considered a fixed asset and capitalized it must meet all five of the above criteria. The capitalization policy will determine the items to be included in this account. For financial reporting purposes the capitalization amount is $5,000. The property should be recorded at cost, including freight, installation and other charges incurred to place the asset in use. If an asset is acquired through donation an appraised value should be established as of the donation date and assigned to the asset.