- Are held for use in the production or supply of and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets. Nonfinancial Assets: Non-financial assets are acquired, constructed, or developed assets that do not normally provide resources to discharge existing liabilities, but instead: - Are normally employed to deliver government services; - May be consumed in the normal course of operations; and - Are not for resale in the main course of operations. Betterments: Subsequent expenditures on tangible assets that: - Increase previously assessed physical output or service capacity; - Lower associated operating costs; - Extend the useful life of the asset; or - Improve the quality of the output. Any other expenditure would be considered a repair or maintenance and expensed in the period. Historical Cost (H): Is the actual purchase value of asset including installation, engineering, legal, freight, design costs, and includes interest costs until asset goes into service. Consumer Price Index (CPI): Is the Saskatchewan Consumer Index. Capitalization Threshold: Is the value used to determine when a purchase is to be capitalized and reported in the financial statements? Below this threshold the purchase is recorded as an expense. Group Assets: Assets that have a unit value below the capitalization threshold but have a material value as a group. Normally recorded as a single asset with one combined value. Although recorded in the financial systems as a single asset, each unit may be recorded in the asset subledger for monitoring and control of its use and maintenance. Examples could include personal computers, furniture and fixtures, small moveable equipment, etc. Fair Value: Fair value is the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act. Residual Value:
- Are held for use in the production or supply of and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets. Nonfinancial Assets: Non-financial assets are acquired, constructed, or developed assets that do not normally provide resources to discharge existing liabilities, but instead: - Are normally employed to deliver government services; - May be consumed in the normal course of operations; and - Are not for resale in the main course of operations. Betterments: Subsequent expenditures on tangible assets that: - Increase previously assessed physical output or service capacity; - Lower associated operating costs; - Extend the useful life of the asset; or - Improve the quality of the output. Any other expenditure would be considered a repair or maintenance and expensed in the period. Historical Cost (H): Is the actual purchase value of asset including installation, engineering, legal, freight, design costs, and includes interest costs until asset goes into service. Consumer Price Index (CPI): Is the Saskatchewan Consumer Index. Capitalization Threshold: Is the value used to determine when a purchase is to be capitalized and reported in the financial statements? Below this threshold the purchase is recorded as an expense. Group Assets: Assets that have a unit value below the capitalization threshold but have a material value as a group. Normally recorded as a single asset with one combined value. Although recorded in the financial systems as a single asset, each unit may be recorded in the asset subledger for monitoring and control of its use and maintenance. Examples could include personal computers, furniture and fixtures, small moveable equipment, etc. Fair Value: Fair value is the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act. Residual Value:
RM%20Policy%20Manual%202018.docx