Accounting for Infrastructure

Guidance on establishing when costs for infrastructure must be capitalized at the university.

Infrastructure is defined as long-lived capital assets that are stationary in nature and normally preserved for a significantly greater number of years than most capital assets. Infrastructure assets are usually part of a larger system of assets, such as roads, bridges, tunnels, water and sewer systems.


1. Examples:

Infrastructure assets with costs over $35,000 include but not limited to:

  • Roads and pathways
  • Parking Lots and paved sports courts
  • Bridges and tunnels
  • Drainage systems
  • Water and sewer systems
  • Lighting systems

Note: covered structures should be classified as building and structures. Infrastructure assets will be assigned a unique CAAN number.

2. Improvements

Infrastructure improvements are capital events that materially extend the useful life or increase the value of the infrastructure, or both. Infrastructure improvements should be capitalized as betterments and recorded as an addition of value to the infrastructure if the improvement or addition of value meets the capitalization threshold and materially increases the life or value of the asset relative to the original cost or life period.

3. Depreciation

Each infrastructure assets capitalization will be tracked and depreciated separately with a 25 year useful life.