Cut Bank School District




Capitalization Policy for Fixed Assets


A fixed asset is a property that meets all of the following requirements.


1.   Must be tangible in nature.


2.   Must have a useful life of longer than the current fiscal year.


3.   Must be of significant value.


Fixed assets may be acquired through donation, purchase or may be self-constructed.  The asset value for donations will be the fair market value at the time of the donation.  The asset value, when purchased, will be the initial cost plus the trade-in value of any old asset given up, plus all costs related to placing the asset into operation.  The cost of self-constructed assets will include both the materials used and the cost of labor involved in the construction of the asset.


The following significant values will be used for different classes of assets:


Class of Fixed Asset                    Significant Value


Equipment and machinery           $5000.00 or more


Buildings - Improvements            $5000.00 or more


Improvements other than buildings          $5000.00 or more


Land                          Any amount




Cross Reference:    7500     Property Records


Policy History:

Adopted on:

Revised on: