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Subject Area: Accounting
Responsible Office: Financial Services
Approval: Associate Vice President for Finance
Originally Issued: July 1988
Revised: June 30, 2006, January 2010
Refer Questions To: Martha Bulin, 773-702-1958
A provision for depreciation is recorded in the Financial Accounting System to reflect the net asset value of land improvements, buildings, equipment, and books throughout the useful life.
- Depreciation on capitalized assets will be calculated in accordance with applicable financial accounting pronouncements.
- Land improvements, buildings, equipment, and books will be depreciated using the straight line method over the following useful lives:
Years Useful |
Description |
Land: |
|
| 20 |
Land improvements - general |
| 20 |
Land improvements - handicap accessibility |
| Infrastructure: |
|
| 20 |
Utility systems - steam lines, chillers |
| 20 |
Utility systems - electric vaults, electric loops |
| 5 |
Telecommunications Systems |
Componentized Building and Renovation: |
|
60 |
Excavation and backfill |
60 |
Exterior walls and foundations |
60 |
Framing |
60 |
Floors |
40 |
Roofs |
25 |
Roofing |
25 |
Partitions and interior finishes |
20 |
Electric system |
25 |
Plumbing system |
20 |
Heating and air-conditioning system |
25 |
Sprinkler system |
25 |
Elevators, escalators, and other fixed equipment |
25 |
Windows, window replacements |
30 |
Construction Exterior |
20 |
Alarm & P.A. Systems |
25 |
Non-componentized renovation projects |
45 |
Non-componentized buildings |
30 |
Capitalized interest |
Equipment: |
|
10 |
Scientific and technical |
10 |
Constructed scientific and technical |
5 |
Computer and software |
5 |
Telecommunications |
5 |
Office and educational |
10 |
Furniture and fixtures |
10 |
Shop machinery and tools |
3 |
Vehicles |
7 |
Miscellaneous equipment |
10 |
Library books |
- If equipment is acquired in the first half of the fiscal year, a full year's depreciation is recorded in the first year. If the asset is acquired in the second half of the fiscal year, no depreciation is recorded in that fiscal year.
- A full year's depreciation will be recorded for buildings, building renovations, land improvements, leasehold improvements, and books in the year they are capitalized.
- Depreciation of newly constructed buildings will commence in the year of useful occupancy.
- Leasehold Improvements (see Financial Policy No. 1009.2) will be depreciated using the straight line method over the remaining life of the lease or the useful life of the improvement whichever is shorter.
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