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
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
Seven (7) Years
- Food service
- Heavy equipment
Ten (10) Years
- Building systems (security, fire suppression, lifts, elevators)