Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
H. Capital Assets
Government-Wide Financial Statements
Capital assets, which include land, land improvements, buildings, machinery and equipment, are reported in the government-wide financial statements. Capital assets are recorded at historical cost, or at estimated historical cost, if actual historical cost is not available. Intangible right to use leased assets are recorded at the net present value of non-cancellable lease payments at inception. Donated capital assets are recorded at the estimated fair market value at the date of donation. All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Capital assets (excluding land) are depreciated on a straight-line basis. The estimated useful lives of capital assets are as follows:
Estimated Useful Life (in years)
Capital Asset Type
Buildings…………………………………………… 40 Right to use leased busses….................................. 10 Machinery and equipment………………………… 5 - 10 Vehicles….............................................................. 5 Improvements……………………………………… 15
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the acquiring fund in the year of the purchase. I. Deferred Outflows/Inflows of Resources
Government-Wide Financial Statements (Net Position)
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources , represents a consumption of net position that applies to a future period(s) and so will not be
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