Policy Area: Accounting and Financial Reporting
Policy Sub Area: Capital Assets
Authority: GASB Codification Section 1400; GASB Implementation Guide 2021-1 Question 5.1
Effective Date: 7/1/2023
Last Revision Date: 5/27/2026
Policy Owner/Division: Statewide Accounting
Policy
Similar assets that are acquired at or near the same time with a single objective, that individually fall below the capitalization threshold, but the aggregate value is significant, should be capitalized as a grouped asset.
Individual entities within the State’s financial reporting unit should assess acquisitions of similar assets purchased as a group at or near the same time to determine whether or not the aggregate value of the group is material. Materiality will vary between agencies and component units within the State reporting entity.
Larger agencies that make several bulk asset purchases during the year should evaluate their grouped asset activity monthly. Smaller agencies that have relatively few bulk asset purchases may only need to review their grouped asset activity and account for grouped assets on an annual basis as part of their fiscal year-end processes.
Examples of asset types that may not meet the capitalization threshold on an individual basis, yet could be significant collectively, are computers, classroom furniture, library books and weapons. This is not an exhaustive list of possible applicable assets.
Procedures
N/A
Accounting Guidance
Entities should refer to the Appendix B OSC Guide to Identifying and Recording Grouped Assets in the FA Module for further information on recognizing grouped assets.
Related Documents (Memos/Forms)
Appendix B OSC Guide to Identifying and Recording Grouped Assets in the FA Module
Entities should refer to QRG FA-24 Adding a Grouped Asset for further information on recording grouped assets in the NCFS FA module.
Policies to review: