Depreciation Policy

Screenshot of the first page of Depreciation Policy

This policy provides guidelines for the computation and recording of capitalized property, plant and equipment costs depreciation.

In this sample, capital expenditures for assets that are immediately placed into service should be recorded directly into the appropriate fixed asset account. Capital expenditures for assets that are not immediately placed into service should be recorded in the construction-in-process (CIP) account until they are ready and available for use, at which time they should be moved into the appropriate fixed asset account. Details of the amounts included in the CIP account should be maintained by the project.

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