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business. If practical, the costs of an improvement are normally added to the cost of the <br />related structure, rather than treating it as a separate asset. <br />Examples of items to be capitalized as building improvements include: <br />• Installation or upgrade of heating and cooling systems, including ceiling fans and <br />attic fans <br />• Original installation or upgrade of wall or ceiling covering such as carpeting, tiles, <br />paneling, or parquet <br />• Structural changes such as reinforcement of floors or walls, installation or <br />replacement of beams, rafters, joists, steel grids, or other interior framing <br />• Installation or upgrade of window or door -frames, upgrading windows or doors, built- <br />in closet and cabinets <br />• Interior renovation of casings, baseboards, light fixtures, and ceiling trim <br />• Installation or upgrade of plumbing and electrical wiring <br />• Installation or upgrade of telecommunication systems <br />Examples of items considered repairs or maintenance in nature and should not be <br />capitalized as buildings or building improvements include: <br />• Adding, removing and/or moving of walls relating to renovation projects that are not <br />considered major rehabilitation projects and do not increase the value of the building <br />• Improvement projects of minimal or no added life expectancy and/or value to the <br />building <br />• Plumbing or electrical repairs <br />• Cleaning, pest extermination, or other periodic maintenance <br />• Interior decoration, i.e., draperies, blinds, curtain roads, wallpaper <br />• Exterior decoration, i.e., detachable awnings, uncovered porches, decorative fences <br />• Maintenance -type interior renovation including repainting, touch-up plastering, <br />replacement of carpet, tile, or pane sections, and refinishing of sinks and fixtures <br />• Replacement of a part or component of a building with a new part of the same type <br />and performance capabilities, e.g., replacement of an old boiler with a new one of <br />the same type and performance capabilities <br />• Any other maintenance -related expenditure which does not increase the value of the <br />building <br />3. Improvements Other Than Buildings (Land Improvements) <br />This asset class is used for permanent (i.e., non -moveable) improvements, other than <br />buildings, that add value to land but do not have an indefinite useful life (i.e. fences, parking <br />lots, retaining walls). Moveable items should be classified as machinery and equipment. <br />4. Machinery and Equipment <br />4 <br />