Capitalization and Fixed Asset Accounting Policy

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This policy establishes guidelines for capitalizing, depreciating, transferring, disposing, and maintaining control of capital or fixed assets at a company.

This example establishes standards and procedures for ensuring that a company’s accounting for capital assets and depreciation are in compliance with management’s objectives and Generally Accepted Accounting Principles (GAAP). Proper control procedures will be followed for all capital asset acquisitions, transfers and dispositions in order to provide internal control of capital equipment and to assist in reporting. Managers are responsible for office equipment, furniture, fixtures, computer and lab equipment, and other capital assets.

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