HomeMy WebLinkAboutC.054.93010_0444 (2)Other costs required to place or render the asset into operation
Constructed Buildings
Completed project costs
Cost of excavation or grading or filling of land for a specific
building
Expenses incurred for the preparation of plans, specifications,
blueprints, etc.
Cost of building permits
Professional fees (architect, engineer, management fees for design and
supervision, legal)
Costs of temporary buildings used during construction
Permanently attached fixtures or machinery that cannot be removed
without impairing the use of the building
Additions to buildings (expansions, extensions, or enlargements)
Examples of Expenditures to be capitalized as improvements to buildings
follow:
Note: For a replacement to be capitalized, it must be a part of a major
repair or rehabilitation project, which increases the value, andior useful
life of the building, such as renovation. A replacement may also be
capitalized if the new itemJpart .is of significantly improved quality and
higher value compared to the old item/part. Replacement or restoration to
original level would not be capitalized. Determination must be made on a
case-by-case basis.
Conversion of attics, basements, etc., to usable space
Structures attached to the building such as covered patios,
garages, walkways, enclosed stairwells, etc.
Installation or upgrade of heating and cooling systems, including fans
and vents
original installation/upgrade of wall or ceiling covering such as
carpeting, tiles, paneling, or parquet
Structural changes such as reinforcement of floors or walls,
installation or replacement of beams, rafters, joists, steel
grids, or other interior framing
Installation or upgrade of window or door frame, upgrading of
windows or doors, closets and cabinets
Interior renovation associated with casings, baseboards, light
fixtures, ceiling trim, etc.
Exterior renovation such as installation or replacement of siding,
roofing, masonry, etc.
Installation or upgrading of plumbing and electrical wiring
Installation or upgrade of phone or closed circuit television
systems, networks, fiber optic cable, wiring required in the
installation of equipment (that will remain in the building)
other costs associated with the above improvements
Building Maintenance Expenses
The following are examples of expenditures not to capitalize as improvements to
buildings. Instead, these items should be recorded as maintenance expense:
Adding, removing and/or moving of walls relating to renovation
projects that are not considered major rehabilitation projects and
do not increase the value of the building
Improvement projects of minimal or no added life expectancy and/or
value to the building
Plumbing or electrical repairs
Cleaning, pest extermination, or other periodic maintenance
Interior decoration, such as draperies, blinds, curtain rods,
wallpaper
Exterior decoration, such as detachable awnings
Maintenance -type interior renovation, such as repainting, touch-up
plastering, replacement of carpet, tile, or panel sections, sink
and fixture refinishing, etc.
Maintenance -type exterior renovation such as repainting,
replacement of deteriorated siding, roof, or masonry sections
Replacement of a part or component of a building with a new part of
the same type and performance capabilities, such as replacement of
an old boiler with a new one of the same type and performance
capabilities
Any other maintenance -related expenditure which does not increase the
value of the building