Admin Committee recommended for Board Approval (11/7/2022)
Approved, Library Board 11/15/2022
Depreciation of Capital Assets Policy PDF
- The East Greenbush Community Library reports capital assets, which include property, plant, and equipment on financial statements. Capital assets are defined by the Library as assets with an initial, individual cost in excess of $5,000 and an estimated useful life in excess of one year, except for library materials.
- Such assets are recorded as the cost or value at the time of acquisition.
Property, Plant and Equipment and Depreciation
Depreciation is provided using the straight-line method over the estimated useful lives of the assets. The straight-line method assumes that the asset’s economic benefit is used consistently and similarly throughout the useful life of an asset (ex: if an asset has a useful life of five years, depreciation equals 1/5) of the assets cost per year. Capital Assets are recorded at fair value as of the date acquired. Generally, the fair value of purchased items is the purchase price. The fair value for a donated asset can be established through appraisal, market reports, or value of similarly priced item online or in a catalog.
|Furniture, Fixtures, Finishes:||7 years|
|Land Improvements:||5-15 years|
|Software & Licenses:||3 years|
Maintenance and Repairs
- Maintenance and repairs are charged to operations when incurred; betterments and construction projects are capitalized.
- When property, plant and equipment is sold or otherwise disposed of, the asset account and related accumulated depreciation account are relieved, and any gain or loss is included in operations.
Impairment of Long-Lived Assets
- The Library reviews long-lived assets, including property, plant, and equipment for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recovered. An impairment loss would be recognized when the estimated future cash flows from the use of the asset are less than the carrying amount of the asset.