1106.4 Plant Assets

FRES Design and Construction is responsible for accounting for all costs of construction (new building construction and building and land improvements) in accordance with the applicable financial accounting pronouncements.

All gifts received for the purpose of funding plant construction are recorded in established capital gift funds.   

All construction costs are recorded as Construction-in-Progress in the Capital Construction Fund until the construction is complete and capitalized to the appropriate plant asset account.  

When a certificate of occupancy is issued on a newly constructed building, construction costs are capitalized as buildings and fixed equipment and depreciated in accordance with the University depreciation policy 1106.2.