Facilities are assets (other than general use buildings) that are built, installed or established to enhance the quality or facilitate the use of land for a particular purpose. Other improvements are enhancements made to a facility or to the land.
Examples of expenditures to be capitalized as facilities and other improvements include:
Fencing and gates
Landscaping
Parking lots/driveways/parking barriers
Outside sprinkler systems
Recreation areas and athletic fields (including bleachers)
Golf courses
Paths and trails
Septic systems
Stadiums
Swimming pools, tennis courts and basketball courts
Capital assets are tangible and generally illiquid property which a business intends to use to generate revenue and expects its usefulness to exceed one year. On a balance sheet, capital assets are represented as property, plant, and equipment (PP&E). Examples include land, buildings, and machinery.
If the replacement meets the building threshold and is of significantly improved quality and higher value, it would be capitalized. Example-Replacement of a shingle roof with a tile roof having additional qualities the original did not have.
Building improvements include additions, improvements, or betterments. Additions are extensions of existing structures (i.e., increase to useful space).
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