Modifications and Repairs [1]

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 [2]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.