Capital assets

From WikiMD's Food, Medicine & Wellness Encyclopedia

 - land (including parklands), structures, equipment (including motor vehicle and aircraft fleets), and intellectual property (including software) which are used by the Federal Government and have an estimated useful life of two years or more. Capital assets exclude items acquired for resale in the ordinary course of operations or held for the purpose of physical consumption, such as operating materials and supplies. The cost of a capital asset is its full life-cycle cost, including all direct and indirect costs for planning, procurement (purchase price and all other costs incurred to bring it to a form and location suitable for its intended use), operations and maintenance (including service contracts), and disposal. Capital assets may or may not be capitalized, i.e., recorded on an entity's balance sheet, under Federal accounting standards.


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