Policy Statement
SelfDesign Learning Foundation (SDLF) is committed to safe financial practices that protect its assets to maintain accountability of our spending and the integrity of our financial statements.
Definitions
Capital Assets – tangible assets exceeding $500 and expected to last longer than one year are classified as capital assets.
Policy
SelfDesign Learning Foundation will include in a balance sheet record tangible assets exceeding $500 and expected to last longer than one year.
Protocol
The capital assets records will contain detailed descriptions, item-locations, identifying labels or tags, as well as an itemized receipt with dates of purchase or receipt of the asset and the cost (if any).
The capital asset listing will be updated at least monthly.
Tangible capital assets will be recorded at historical cost as of the date acquired or constructed, and amortized over their estimated useful lives, applying the straight line method at the following annual rates:
| Asset | Amortization |
| Computer hardware and software | 3 years |
| Furniture and equipment | 5 years |
Detailed records are maintained for all items below the capitalization thresholds that should be safeguarded from loss. These items include computer equipment and hardware, software, furniture, and fixtures that fall below the established thresholds. Asset purchases that fall below $500 will be expensed in the time period in which they were purchased.
Any capital asset that has been amortized to a book value of zero, or is no longer the property of SDLF, shall be removed from SDLF’s accounting general ledger.
Related Documents
None