Capitalization Policy — full text

This is an automated transcription (OCR) of the captured official document — minor recognition errors are possible; the source document governs. Snapshot 394ef980f755 · verified 2026-06-04 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

# Capitalization Policy 1. The purpose of this policy is to establish rules and guidelines for the capitalization of long-term capital assets including land, site improvements, buildings, furniture and equipment. 2. Purchased capital assets are recorded at cost. Contributed capital assets are recorded at fair market value. 3. Capital assets are depreciated on a straight-line basis as follows: Site Improvements - 10 years Buildings - 10 years Equipment & Furnishings - 5 years Computer Equipment - 3 years 4. Capital Assets are depreciated at 50% of regular rate in the year of acquisition. Capital assets under construction are not recognized until available for use. 5. Restricted Capital grants are recognized in the year the related capital asset(s) is available for use. 6. Assets valued at less than $500 are expensed in the year of purchase. Groups of associated assets are capitalized if the total value exceeds $500. 7. Cost in accordance with section 2 above, is the gross amount of consideration given to acquire, construct, develop, or better a tangible capital asset, including all costs directly attributable to the acquisition, construction, development, or betterment of the tangible capital asset including costs to install the asset at its final location in the condition required for its use. 8. Cost, in accordance with section 2 above, does not include taxes paid in regard to the asset that are recoverable through other levels of government by the Rural Municipality. 9. This policy is subject to any change in Public Sector Accounting Standards pertaining to Tangible Capital Assets and the direction of the Rural Municipality Auditors as may be necessary from time to time. ## Rural Municipality of Miltonvale Park Incorporated in 1974, includes the areas of North Milton, Milton Station, Springvale, South Milton and Sleepy Hollow. We have approximately 1190 residents. ### Contact **Rural Municipality of Miltonvale Park** 7B New Glasgow Road - Rte 224 North Milton, PE C1E 0S7 902-368-3090 [admin@miltonvalepark.com](mailto:admin@miltonvalepark.com) Follow along on social media - [Facebook](https://www.facebook.com/RuralMunicipalityofMiltonvalePark?ref=embed_page) ### Office Hours **Mondays:** 10am-5pm **Tuesdays:** 1pm-6:30pm **Wednesdays:** 9am-5pm **Fridays:** 10am-12pm The office may be open other hours by chance or appointment. The Development Officer is in on Wednesdays from 10am-2pm or call the office to make an appointment. ###  Copyright © 2026 Miltonvale Park - Website by [TechnoMedia](https://technomediapei.com/) - [Log in](https://miltonvalepark.com/wp-login.php)