VALUING PROPERTY - 8618

Capital assets/property acquired through purchase or internally built/generated, will be reported at the historical cost (i.e., the cost of the asset, and the related costs necessary to place the asset in its intended location and condition for use). Gifts, warranty replacements, and certain transfers of capital assets/property are reported at the acquisition value (i.e., the price that the agency/department would have had to pay to purchase an equivalent asset on the date of acquisition).

Agencies/departments may incur significant costs in connection with existing capital assets in periods subsequent to their initial acquisition. In these instances, agencies/departments must distinguish between two different types of costs:

• Improvements, betterments and additions
• Repairs and maintenance

See SAM sections 8618.1 and 8618.2.