This Capital Assets Policy is designed for organizations aiming to enhance their capital asset management strategies. It provides a detailed framework that facilitates compliance with internal control standards while streamlining the tracking of assets and improving the accuracy of financial reporting. By concentrating on critical processes such as acquisition, depreciation, transfer and disposal, this tool equips businesses with practical insights that promote optimized asset management practices, safeguard valuable resources and ensure operational efficiency.

Each enclosed sample addresses critical aspects of capital asset management. Sample 1 introduces foundational guidelines for capitalization, depreciation and disposal protocols, emphasizing proper documentation and compliance. Sample 2 elaborates on control procedures for acquisitions, transfers and dispositions, ensuring alignment with internal policies and financial thresholds. Sample 3 extends the scope to include bundled purchases, definitions and specific depreciation methods, while providing clarity on asset categorization and lifecycle management. Together, these samples serve as a resource for maintaining rigorous oversight and maximizing the value of capital assets.

Sample procedures include:

• All tooling expenditures that exceed $X or the dollar limit required to meet local statutory requirements will be capitalized and depreciated over the appropriate useful life.
• Capital asset additions must be purchased within the company’s established financial approval policies.
• All costs associated with the transfer will be expensed.