1981-97 Establishing Policy Of Fixed Asset Accounting For The Kodiak Island Borough.changes.
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ATTEST:
By / L
!I Bor C l e
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KODIAK ISLAND BOROUGH
RESOLUTION NO. 81 -97 -R
'FIXED ASSET RESOLUTION OF THE POLICY OF
WHEREAS, the Kodiak Island Borough desires to enhance its accounting
:practices with respect to the record keeping of all fixed assets, and
WHEREAS, said proposal will be in accordance with generally accepted
accounting principles(GAAP), and
WHEREAS, the Finance Officer and auditors are in agreement with said
NOW, THEREFORE, BE IT RESOLVED that:
1. Fixed assets (property, plant, and equipment) of the Borough are
defined as those tangible assets with a useful life in excess of
one year, an initial cost of Five Hundred Dollars ($500), and
those items that do not lose their identity when used with or
applied to another asset.
All fixed assets will be capitalized at time of acquisition.
Purchased items will be capitalized at cost. Donated assets will
be capitalized at market value. Constructed assets will be
capitalized after completion of construction whether or not
placed into service.
3. Land will be capitalized upon acquisition at cost inrthe absence
of cost at the nominal amount of One Dollar ($1) per
fraction thereof if no prior value has been assigned to such land.
Reversion of land to the Borough from tax liens, land sale agree-
ments that have been dishonored or other means will be capitalized
at the assessed value of such land.
4. Exceptions:
No road, bridge, culvert, viaduct or other such major asset will
be capitalized. These public assets by virtus of their nature
claim a degree of immunity from pilferage, vandalism and
misappropriation.
BE IT FURTHER RESOLVED that this resolution is intended to set forth
policy and valuation criteria for use in proper Borough accounting and does not
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in in any way alter the property procurement and disposition policies now in
1 effect or that which henceforth may become the policy of the Borough.
PASSED AND APPROVED by the Kodiak Island Borough Assembly this
198 / .
KODIAK ND BOROUGH/
By
Borough Mayor
