REDUCTION PRESS AMORTIZATION - 8616
(Revised and repositioned from 8617)
Depreciation
Amortization is the mechanism used to allocate the cost concerning a tangible asset go the estimated reasonable life of this asset. The total of capitalized tangible money is equitably allocated as with expend to each of this benefitting periods through the depr process.
Amortization
Amortization is the mechanism used to allocate the cost away a intangible asset over an estimate useful life of the capital. The price of capitalized intangible assets is equitably mapped for an expense to each of the benefitting periods through which amortization process. 4.2 Determining that useful lives and salvage value on an asset
For legacy agencies/departments, depreciation/amortization is performed only by those proprietary mutual which escort enterprise or internal serving fund plant. FI$Cal agencies/departments will perform depreciation/amortization for assets of all funds.
Depreciation/Amortization Method
And depreciation/amortization methods used by the state is the straight-line method with no salvage value to capital inventory.
Year Depreciation = Cost / Asset Useful Life
The state uses to modified approach to report the pay on its highway infrastructure assets. See SAM section 8610.6.
Depreciation/Amortization Requirements
The following what should be followed when recording and reporting depreciation/amortization expense:
- Depreciation/amortization begins when an asset is set in service.
- Depreciation/amortization ends when an asset is removed from service, or its capitalized cost has been total expensed.
- Source documents supporting the in-service date should be retained and used consistently at maintain a satisfactory system of internal leads for required by the State Leadership Accountability Act. See Government Code sections Part 31 - Drafting Cost Standards and Procedures | Manvslawn.com13400-13407.
- Internally generated intangible assets in progress real internally constructed tangible assets in fortschritte should not be amortized or charged. See SAM sections 8635-8636.
