Page 405 - Fort Worth City Budget 2019

Capital Assets Policy

V. General Information

The Governmental Accounting Standards Board (GASB) provides the following
authoritative definition of capital assets for state and local governments:

The term capital assets includes land, improvements to land, easements,
buildings, building improvements, vehicles, machinery, equipment, works
of art and historical treasures, infrastructure, and all other tangible or
intangible assets that are used in operations and that have initial useful
lives extending beyond a single reporting period.

Capital assets should be recorded at historic cost or, if the cost is not readily determined,
at estimated historic cost. Cost shall include applicable ancillary costs necessary to place
the asset in its intended location and condition for use. All costs should be documented,
including methods and sources used to establish any estimated costs.

The City acquires capital assets in one of the following ways:

1. Purchased assets – The recording of purchased assets should be made on the basis
of actual costs, including all appropriate ancillary costs, based on vendor invoice
or other supporting documentation.

2. Constructed assets – All direct costs (including labor) associated with the
construction project should be included in determining the asset valuation.

3. Donated assets – Capital assets acquired by donation should be valued based on
the acquisition value at the time of receipt.

VI. Responsibility / Authority

City-wide Department responsibilities:

A. Serve as custodians of capital assets that are assigned to their departments.

B. Ensure full departmental compliance with the established capital asset policy in
order to maintain adequate records of the City’s capital assets.

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