Page 409 - Fort Worth City Budget 2019

Capital Assets Policy

 Original contract or invoice cost
 Freight, acquisition fees, import duties, handling and storage costs
 Specific in-transit insurance charges
 Installation charges

E. Vehicles

A motor vehicle is a self-propelled road vehicle that is used for the transportation of
passengers, or passengers and property. The capitalization amount includes the total
purchase price less any applicable discounts and any ancillary payments required to
place the asset in its intended state of operation.

F. Intangible Assets

Intangible assets are those that lack physical substance, are non-financial in nature
and have an initial useful life extending beyond a single reporting period. Intangible
assets must be identifiable, meaning they are either capable of being separated by
means of sale, transfer, license or rent, or that they arise from contractual or other
legal rights.

Intangible assets acquired or developed by the City could include licensed software,
internally generated software, works of arts and historical treasures. Other examples
of intangible assets the City may own include easements, water rights, timber rights,
patents and trademarks.

G. Construction Work in Progress

Construction work in progress represents capitalized costs related to a capital asset
that is not yet substantially ready to be placed in service. For construction work in
progress assets, no depreciation is recorded until the asset is placed in service. When
the asset is placed in service, the asset is reclassified to the correct category and
depreciation begins.

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