Page 410 - Fort Worth City Budget 2019

Capital Assets Policy

VIII. Capitalization

A. Capitalization Thresholds

1. Land must be capitalized regardless of the value or cost.

2. Buildings must be capitalized regardless of the cost.

3. Infrastructure must be capitalized when the useful life is 3 years or greater and the
cost is $100,000 or more.

4. Betterments and Improvements qualifying as a capital asset is defined as a single
item with an acquisition cost of $25,000 or more and has a useful life of 2 years or
greater.

5. Machinery and Equipment qualifying as a capital asset is defined as a single item
with an acquisition cost of $25,000 or more and has a useful life of 2 years or
greater. This includes items designed for off road.

6. Vehicles must be capitalized when the useful life is 4 years or greater, the cost is
$5,000 or greater and it meets both of the following criteria:

 Self-propelled
 Primary use is on public streets and the unit is street legal

7. Intangible assets must be capitalized when the useful life is 3 years or greater and
the cost is $100,000 or more.

Nothing in this section is intended to limit the City from capitalizing assets that have
values below the thresholds identified above.

B. Contributed or Donated Assets

Contributed or donated assets must be recorded at acquisition value. Acquisition value
is the price that would be paid to acquire an asset with equivalent service potential in
an orderly market transaction at the acquisition date, or the amount at which a
liability could be liquidated with the counterparty at the acquisition date.

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