HomeMy WebLinkAboutC.054.93010_0443I. LAND & LAND IMPROVEMENTS (6010.00)
Land Definition
Land is the surface or crust of the earth, which can be used to support
structures, and may be used to grow crops, grass, shrubs, and trees. Land
is characterized as having an unlimited life (indefinite).
Land Improvement Definition
Land improvements consist of betterments, site preparation and site
improvements (other than buildings) that ready land for its intended use.
The costs associated with improvements to land are added to the cost of
the land.
Capitalization Threshold
All acquisitions of land and land improvements will be capitalized.
Examples of expenditures to be capitalized as land and/or land
improvements include, but are not limited to, the following:
Purchase price or fair market value at time of gift
Commissions
Professional fees (title searches, architect, legal, engineering,
appraisal, surveying, environmental assessments, etc.)
Land excavation, fill, grading, drainage
Demolition of existing buildings, and improvements (less salvage)
Removal, relocation or reconstruction of property of others (railroad,
telephone, and power lines)
Interest on mortgages accrued at date of purchase
Accrued and unpaid taxes at date of purchase
Other costs incurred in acquiring the land
water wells (includes initial cost form drilling, the pump and its casing)
Right-of-way
II. BUILDINGS & BUILDINGS IMPROVEMENTS (6030.00)
Building Definition
A building is a structure that is permanently attached to the land, has a
roof, is partially or completely enclosed by walls, and is not intended to
be transportable or moveable. Buildings that are an ancillary part of the
County's network, such as storage structures, some fairground structures,
and recreational challenge structures will be reported as facilities
rather than as buildings.
Building Improvement Definition
Building improvements are capital events that materially extend the useful
life of a building or increase the value of a building, or both. A
building improvement should be capitalized as a betterment and recorded as
an addition of value to the existing building if the expenditure for the
improvement is at the capitalization threshold, or the expenditure
increases the life or value of the building by 25 percent of the original
life period or cost.
Capitalization Threshold
The capitalization threshold for buildings and building improvements is
$25,000.
Examples of Expenditures to be capitalized as buildings follow:
Purchased Buildings
Original purchase price
Expenses for remodeling, reconditioning or altering a purchased
building to make it ready to use for the purpose for which it was
acquired.
Environmental compliance (i.e., asbestos abatement)
Professional fees (legal, architect, inspections, title searches, etc.)
Payment of unpaid or accrued taxes on the building to date of purchase
Cancellation or buyout of existing leases