Modifications and Repairs
Modifications to existing equipment are capitalized when they significantly increase the useful life or the value of the original asset (rule of thumb: modification costs greater than 50% of the asset and/or increases useful life by more than one year).
Modification cost for equipment that has already been tagged must be reported to CAM and the additional costs will be added to the specific asset.
To request changes to the useful life of an asset, please contact Capital Assets Management Office.
Repairs of existing equipment are not capitalized. Repairs will be handled in the General Ledger accounting system by using IACT 6265.
Maintenance costs including replacement of consumable parts of an asset, like repairs, do not extend the life of the asset and should be charged to a Supplies Iact.