Building Remodeling Costs and Other Building Costs
Remodeling costs generally change the use of building space or refurbishes space to make it more functional or more cosmetically appealing.
Other building costs include installation of equipment that is permanently attached to a building structure so that it cannot be removed without costly or extensive alterations. Examples of such permanent equipment includes: non-portable, single-room air-conditioning units; fire protection systems; security systems; water distributing systems; heat distributing and electrical distributing systems; elevator shafts; utility outlets; and computer cabling.
If the total acquisition cost of remodeling or other permanent modifications is $250,000 or more, the purchase is coded as a capital acquisition and must be coded to the proper capital object code.
An intangible asset possesses all three of the following characteristics:
1. lack of physical substance (not tangible)
2. nonfinancial in nature (not in a monetary form similar to cash and investment securities), and
3. initial useful life beyond a single fiscal year.
Examples of intangible assets include computer software, patents, trademarks, copyrights, websites, and right-of-way easements. Intangible assets can be purchased or licensed, acquired through nonexchange transactions (e.g., donations), or internally generated.