Indian Gaming Association Notes to Financial Statements Note 1: Summary of Significant Accounting Policies (Continued) Property and Equipment
Property and equipment is stated at cost if purchased, or fair market value if donated. Property, equipment and construction costs are capitalized if they exceed $5,000 and the asset has a useful life of at least three years. The cost of constructed assets may include labor, materials, certain general and administrative expenses, and interest incurred during construction. Improvements or refurbishments with aggregated costs that meet capitalization thresholds and that extend the useful life of an existing asset by at least 3 years are capitalized. Works of art are defined as collections or individual items of significance which are not held for financial gain, but rather for exhibition, education and preservation. Purchased works of art are recorded based on historical cost. Gifts of these types are recorded using the fair market value at the date of donation. Works of art where the economic benefit or service potential is used up so slowly that the estimated useful lives are extraordinarily long are not depreciated. Depreciation is computed using the straight-line method over the estimated useful lives as follows:
Assets
Years
Buildings and improvements Furniture, fixtures, and equipment
25 years 3-5 years
Deferred Revenue (Contract Liabilities) Trade show revenues and membership dues are recognized when services are performed and upon the renewal of the membership period. Amounts billed and collected before the services are performed and the renewal of membership are included in deferred revenues. Compensated Absences Vacation leave accrues at graduated rates set forth in IGA personnel policies depending on years of service. At December 31, 2025 and 2024, the value of accumulated vacation leave was $92,746 and $112,445, respectively, and is included in accrued expenses.
Days of Vacation Benefits
Years of Continuous Services
0 through 2 3 through 4 5 or more
10 days 15 days 20 days
13
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