1106.2 Plant Assets

Depreciation

Document purpose

To provide the depreciation policy for plant assets.

effective

December, 1986

revised

May, 2017

Reviewed

May, 2021

Responsible Office

Comptroller

Approval

Comptroller

Policy

  1. The Office of the Comptroller is responsible for all depreciation of plant assets.

  2. Depreciation of plant assets is provided for as part of Plant, net of depreciation in the Statement of Position in accordance with applicable financial accounting pronouncements. Depreciation expense on depreciable assets is shown as an operating expense on the Statement of Activities.  

  3. All plant assets are depreciated using the straightline method. Assets are depreciated over a useful life as determined by the Office of the Comptroller.  

  4. Assets with an in-service date prior to the mid-point of the month are depreciated in the current month. Assets with an in-service date after the mid-point of the month begin depreciating in the subsequent month.  

  5. Depreciation of newly constructed buildings commences upon issuance of a certificate of occupancy.