Property and Equipment


Purpose

To define and set forth procedures to account for AUI Corporate Office purchased property and equipment. The AUI Corporate Office has established that it will:

  • Record Property & Equipment at cost (purchase price).
  • Capitalize Property & Equipment over $1,000 and having expected useful life in excess of two years and to depreciate the amount on a straight-line basis.

Definitions

Capitalize – To record the amount of purchase as an asset to be included in the property, plant and equipment records.

Depreciate – To decrease the amount of an asset that has been capitalized to show the reduction in value due to wear and tear of the asset.

Procedure

  1. When a fixed asset is to be acquired, the AUI Controller will approve the purchase and give the account coding.
  2. A payment voucher is posted by the AUI/NRAO Chief Accountant to record the amount of the Property and Equipment in the JD Edwards Accounting System.
  3. A depreciation rate will be determined and the monthly depreciation calculation is run within the JDE Edwards Accounting system.