Useful Life Schedule for Depreciation and Inventory

Dartmouth acquires physical assets (property, plant & equipment) in pursuit of its mission.  These assets must be recorded, depreciated, and inventoried in accordance with federal regulations, generally accepted accounting principals (GAAP) and good business practice.  Assets (non-capital/expensed) with a value greater than or equal to $5,000 are recorded in the Fixed Asset Module and assigned a useful life over which they are subject to biennial inventories.  Assets (capital) with a value greater than or equal to $25,000 are recorded in the Fixed Asset Module and are assigned a useful life over which they are depreciated and subject to biennial inventories. 

For more information see Property, Plant, and Equipment Policy (ID 024-0001) Appendix B: Useful Life and Depreciation

Depreciation

Dartmouth elects to use the straight line full-year convention method of depreciation.  Assets purchased or in use by December 31st (12/31) are depreciated a full year in the current fiscal year regardless of the month placed in service.  Assets purchased or in use after 12/31 do not begin depreciation until the following fiscal year.  See below for the useful life assigned by Dartmouth.

Equipment & Moveable Equipment

Three (3) Years

  • Audio Visual
  • Computers, hardware and peripheral

Five (5) Years

  • Office equipment
  • Vehicles

Seven (7) Years 

  • Athletic
  • Food service
  • Maintenance
  • Safety
  • Scientific
  • Shop
  • Heavy equipment

Ten (10) Years

  • Building systems (security, fire suppression, lifts, elevators)
  • Furniture
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