Our Fixed Assets Policy is designed to help you establish clear guidelines for capitalization, depreciation, transfers and disposals; ensure compliance with accounting standards; and promote efficient asset utilization. Implementing this policy will enable you to maintain accurate financial records, streamline asset tracking, and minimize risks associated with improper asset management, ultimately driving operational excellence and long-term sustainability.

This document includes four detailed samples that address various aspects of fixed asset management. Sample 1 outlines general policies for capitalization thresholds and procedural guidelines. Sample 2 focuses on compliance with management objectives and GAAP standards, while Sample 3 delves into specific definitions, depreciation methods and asset classifications. Sample 4 provides authoritative guidance on asset impairment, disposal and depreciation, ensuring adherence to key accounting frameworks. Together, these samples provide a robust foundation for effective fixed asset governance.

Sample procedures include:

• The corporate controller must review and approve any exceptions to this policy.
• The cost of repairs and maintenance should be expensed as incurred.
• The cost of maintenance contracts on equipment and software should be expensed when paid.
• Capital asset additions are purchased within established company approval authority policies.