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.
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:
|Capital Gift Revenue||$250,000|
Component Unit A would also recognize a corresponding expense of $250,000.
Related Documents (Memos/Forms)
- 6/30/2017 - Minor edits