102.12 - Statewide Accounting Policy - Transfers of Capital Assets

Policy Area:  Accounting and Financial Reporting
Policy Sub Area:  Capital Assets
Authority:  GASB Codification S20.112
Effective Date:  7/1/2007
Last Revision Date:  6/30/2017
Policy Owner/Division:  Statewide Accounting


Capital assets should not be revalued when transferred between funds and/or component units of the State’s financial reporting entity. In these circumstances, the transferee should recognize the capital assets at the transferor’s carrying value. These intra-entity transfers include donations or purchases/sales of capital assets between any combination of the funds and/or component units of the State’s financial reporting entity including State agencies, universities, community colleges, and all other component units of the State.



Accounting Guidance

Example – Component Unit A donated a building with an original cost of $400,000 and accumulated depreciation of $150,000 to Component Unit B. The building had an acquisition value as of the date of donation of $1.2 million. 
Component Unit B would make the following accounting entry: 

Caption Debit Credit
Building $400,000  
Accumulated Depreciation   $150,000
Capital Gift Revenue   $250,000

Component Unit A would also recognize a corresponding expense of $250,000.

Related Documents (Memos/Forms)


Revision History

  • 6/30/2017 - Minor edits