Contract and Grant Accounts - BC
Capitalization Threshold
Activity: Capitalization Threshold Financial Policy: N/A Related Policies: N/A Additional Forms: N/A Things to Know: Purchased equipment or fabricated equipment having a value exceeding $5,000 must
be capitalized. Likewise, purchased software exceeding $5,000 must be capitalized.
However, most software is actually licensed, not purchased, and would likely not be
considered capital software. The Capital Asset Management Office, in FMS, can provide
additional details. Please see details at the following locations:
Capitalization Threshold http://www.fms.indiana.edu/cg/imp_notice/02-1.asp Capitalization of Moveable Equipment http://www.indiana.edu/~vpcfo/policies/accounting/i-150.html Capitalization of Infrastructure is defined as improvements on land that have a life of their own exclusive of the land or building(s) on that land. Please see financial policy I-210 for details. http://www.indiana.edu/~vpcfo/policies/accounting/i-210.html
