Policies & Procedures Manual - Elizabeth City State University

400.1.57Adopted: 06/14/05DefinitionELIZABETH CITY STATE UNIVERSITYFixed Assets- AdditionsAn addition represents a new asset. Additions increase the physical size or operation capabilitiesof an asset through expansion or extension. Additions do not include renovations. A new wing toa building is an example of an addition.$500/$5,000 ThresholdsAdditions are considered separate assets. An Addition is capitalized if the total cost of the assetis greater than $5,000. The addition is expensed if the total cost of the asset is under $500.Additions vs Maintenance CostsAdditions are different from maintenance costs. Additions increase the physical size or operatingcapabilities of an asset. Maintenance costs are incurred to keep the asset in normal operatingcondition.