|Capitalization of Found Equipment
|Capital Asset Management
|To provide guidelines for reporting found capital assets.
There are two situations where an asset may need to be capitalized as found equipment 1) where the "found" asset is not presented on the asset list for the organization or 2) when the asset was retired in error.
Research needs to be done on the "found" asset to determine how the asset was acquired.
If the "found" asset was acquired by a gift from an external institution please refer to
CSOP 7.0 IU Gifts
If the "found" asset was acquired from a purchase:
If the asset was depreciating and retired in error, the asset will only be re-created when the net book value is equal to or greater than the capitalization threshold of five thousand dollars.
Assets retired in error should be reported to the University Capital Asset Office at firstname.lastname@example.org .
On the add asset document for "found" equipment, the University Capital Asset Office will enter the Account Number, Object Code and Net Book Value or Fair Market Value of the equipment based on the original procurement information, or information supplied by the organization.
The accounting entries are then created based on the financial information entered into the payment section of the add asset document. The account will see offsetting entries to the expense object code 7701 and to expense object code 4997 capital asset adjustment. The entries offset, having no effect on Cash or Fund Balance.
Transaction entered Add Asset document:
Capital Equipment- must have an acquisition value of at least $5,000 and a useful life expectancy of one year or more.
Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.
Found capital assets - assets that were retired in error, or incorrectly coded as non-capital in a prior fiscal year.
CSOP 4.0 Physical Inventories
CSOP 7.0 IU Gifts
CSOP 8.0 Capitalization of Moveable Equipment
CSOP 40.0 Transfer-in Capital Assets
Policy FIN-ACC-150 Ownership, Depreciation and Capitalization of University Assets
Capital Asset Management