Sarasota County, Florida Notes to Financial Statements September 30, 2022 I. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure (e.g., roads, bridges, wastewater, water, drainage systems, and similar items), are reported in the proprietary fund financial statements, and in the applicable governmental or business-type activities columns in the government-wide financial statements. Software, easements, patents, copyrights, water, timber and land rights are reported as intangible assets. Assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are reported at their acquisition value. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Amounts expended for maintenance and repairs are charged to expenditures/ expenses as incurred. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. Property, plant and equipment of the County are depreciated using the straight-line method over the following estimated useful lives: Information regarding assets is included in Note 6 to the financial statements. Assets Years Capitalization Threshold Buildings & building improvements 10‐40 years Capitalize all Infrastructure: General Gov't/Enterprise 10‐50 years $1,000,000/$50,000 Equipment: All other 3‐10 years Per FL Statute 274.02 Intangible Assets: Patents, copyrights, trademarks 10‐50 years $150,000 Water, and timber use rights 10‐50 years $150,000 Software 3‐10 years $150,000 Right‐to‐use lease assets 3‐10 years $150,000 87
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