127XXX - Capital Assets

Capital Assets - Non-Current (COA)

The term capital assets includes land, improvements to land, easements, buildings, building improvements, vehicles, machinery, furniture, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have a normal life expectancy of more than two years.

LAND

• 127000 Land / Land Improvements (Nondepreciable)
  This account reflects the acquisition value of land owned by the State.  Purchased land is recorded at purchase price plus costs such as legal, recording fees, and land improvements consisting of betterments, other than buildings, that ready land for its intended use and produce permanent benefits. Examples of land improvements include site improvements such as excavation, fill, grading, and utility installation; removal, relocation, or reconstruction of property of others, such as railroads and telephone and power lines; retaining walls.  Donated land or land which is obtained by means other than purchase, is recorded at fair-market value based on appraisal at time of acquisition.  Land and land improvements are inexhaustible capital assets that should not be depreciated.
• 127001 Right to Use Lease Asset – Land and Permanent Easements
  This account represents the value of the intangible Right to Use lease asset for leased land and permanent easements accounted for under GASB Statement 87, Leases. This account is for use by governmental and proprietary funds, including component units of the State of North Carolina. The value in this account should include all capitalizable costs applicable under GASB Statement 87, Leases. See OSC Statewide Accounting Policy 105.7 and the GASB 87 Financial Reporting Update for further details.

Buildings

• 127100 Buildings
  This account includes the acquisition value of permanent structures owned by the State. Buildings purchased or constructed are valued at the purchase or contract price of fixtures attached to and forming a permanent part of such buildings including related signage. Buildings acquired by other than purchase are recorded at appraised value at time of acquisition (Note: See "Maintenance Policy" for guidelines on determining whether renovations should be capitalized or expensed.)
• 127101 Right to Use Lease Asset – Buildings
  This account represents the value of the intangible Right to Use lease asset for leased permanent structures accounted for under GASB Statement 87, Leases. This account is for use by governmental and proprietary funds, including component units of the State of North Carolina. The value in this account should include all capitalizable costs applicable under GASB Statement 87, Leases. See OSC Statewide Accounting Policy 105.7 and the GASB 87 Financial Reporting Update for further details.
• 127110 Leasehold Improvements
  This account includes improvements made to leased spaces as well as leased buildings.  For Comprehensive Annual Financial Report reporting this account will roll with buildings.

NC DOT Highway Network

• 127200 North Carolina DOT Highway Network
  This infrastructure account is for use only by the NC Department of Transportation.

General Infrastructure 

Infrastructure assets are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems.

Note: Land and land improvements must be capitalized separately from road system infrastructure.

• 127210 Road Systems
  Includes roads designed for motor vehicle travel that are not part of the State Department of Transportation (DOT) road system. Road costs should include the costs of pavement, culverts, lighting systems, drainage systems, guardrails, markings, traffic control devices, signage, bridges, tunnels, and other buildings that are an ancillary part of the road system (e.g., road maintenance structures). [Note: Former account title - "Highways"]
• 127220     Bridges
  Bridges that are not part of a State DOT or other road system
• 127230     Landscaping
  Exclude land improvements that produce permanent benefits (see Land/Land Improvements)
• 127240    Utility Systems
  These include but are not limited to water distribution systems, sanitary sewer collection systems, natural gas systems, electrical distribution systems, and telecommunication/fiber optics systems that are independent of a single building. [Former account title - "Sewerages"]
• 127250 Towers, Tanks, Wells
• 127255     Dams
• 127260 Fences
• 127265     Exterior Lighting Systems
  Pole lighting systems that are not part of a State DOT or other road system
• 127270     Parking Areas
  Includes parking lots and parking decks
• 127280     Tunnels
  Tunnels that are not part of a State DOT or other road system
• 127290     Other Structures and Improvements
  Includes sidewalks, curbs and gutters, irrigation systems, general signage, pedestrian bridges, paved paths, fountains, and swimming pools.
• 127295 Right to Use Lease Asset – General Infrastructure
  This account represents the value of the intangible Right to Use lease asset for leased general infrastructure accounted for under GASB Statement 87, Leases. This account is for use by governmental and proprietary funds, including component units of the State of North Carolina. The value in this account should include all capitalizable costs applicable under GASB Statement 87, Leases. See OSC Statewide Accounting Policy 105.7 and the GASB 87 Financial Reporting Update for further details.
   

Machinery and Equipment 

This account subgroup includes machinery and equipment owned by the State that have a normal life expectancy of more than two years.

• 127310 Furniture
• 127320 Equipment
• 127330 Motor Vehicles & Motorized Equipment
• 127340 Livestock and Other Animals
• 127350 Right to Use Lease Asset – Machinery & Equipment
  This account represents the value of the intangible Right to Use lease asset for leased machinery and equipment accounted for under GASB Statement 87, Leases. This account includes leases for furniture, general equipment, motor vehicles, and motorized equipment. This account is for use by governmental and proprietary funds, including component units of the State of North Carolina. The value in this account should include all capitalizable costs applicable under GASB Statement 87, Leases. See OSC Statewide Accounting Policy 105.7 and the GASB 87 Financial Reporting Update for further details.
   

Art, Literature, and Artifacts

• 127400 Art, Literature, And Artifacts
  This account includes works of art, literature, textbooks, library and learning resource collections, and other artifacts, whether held as individual items or in a collection, that are exhaustible (e.g., useful lives are diminished by display, educational, or research applications).
• 127410 Art, Literature, and Artifacts - Nondepreciable
  This account includes works or art, literature, textbooks, library and learning resource collections, and other artifacts, whether held as individual items or in a collection, that are inexhaustible.

Intangible Assets

• 127500 Other Intangible Assets
  Former title is Intangible assets.  This account includes copyrights, trademarks, and land use rights (e.g., water, timber and mineral). Land use rights associated with property already owned by an agency should not be reported as intangible assets separate from the property. This account should not be used for permanent easements, patents  or computer software which all have separate NCAS accounts. 
• 127505 Other Intangible Assets - Nondepreciable
  For nondepreciable intangible assets that are not classified elsewhere.
• 127510 Permanent  Easements – Nondepreciable
  Former title is Right-of-way easements.  Effective for FY 2010, this account is designated for permanent easements that are inexhaustible capital assets that should not be depreciated/amortized.
• 127520 Patents
• 127530 Computer Software
  Includes purchased or licensed software, internally generated software and websites. 
• 127540 Subscription (SBITA) Asset
  This account represents the value of the intangible asset for subscription-based IT arrangements for services under GASB Statement 96.  This account is for use by governmental and proprietary funds, including component units of the State of North Carolina.  The value in this account should include all capitalizable costs applicable under GASB Statement 96.  See OSC Statewide Accounting Policy 105.7 and the GASB 96 Financial Reporting Update for further details.
• 127550 Right to Use PPP/SCA Asset
  This account is used by an operator in a PPP/SCA arrangement according to GASB 94 and represents the value of an intangible right to use an underlying PPP/SCA asset according to GASB Statement 94.

Construction in Progress and Assets in Development

• 127800 Construction In Progress
  This account consists of the total project costs from inception to the current date. This is a cumulative figure composed of prior and current year project costs. These figures are available from the Capital Improvement Fund Budget Code.
• 127820  Patents in development
• 127830  Computer software in development

Accumulated Depreciation/Amortization 

This account subgroup records depreciation accumulated on property by periodic adjustments. When property is disposed of by sale, trade-in, etc., accumulated depreciation recorded for the item is removed from the records through journal entry.

• 127900 Accumulated Depreciation - NC DOT Highway Network
• 127910 Accumulated Depreciation - Buildings
• 127911 Accumulated Depreciation - Leasehold Improvements
• 127920 Accumulated Depreciation - Other Structures and Improvements
• 127930 Accumulated Depreciation - Motor Vehicles & Motorized Equipment
• 127931 Accumulated Depreciation - Landscaping
• 127932 Accumulated Depreciation - Towers, Tanks, Wells
• 127933 Accumulated Depreciation - Fences
• 127934 Accumulated Depreciation - Parking areas
• 127935 Accumulated Depreciation - Furniture
• 127936 Accumulated Depreciation - Equipment
• 127937 Accumulated Depreciation - Livestock and Other Animals
• 127940 Accumulated Depreciation - Art, Literature, and Artifacts
• 127950 Accumulated Amortization – Other Intangible Assets
• 127951 Accumulated Amortization – Patents
• 127952 Accumulated Amortization – Computer Software
• 127960 Accumulated Depreciation - Roads Systems (non-DOT)
• 127961 Accumulated Depreciation - Bridges
• 127962 Accumulated Depreciation - Utility Systems
• 127963 Accumulated Depreciation - Dams
• 127964 Accumulated Depreciation - Exterior Lighting Systems
• 127965 Accumulated Depreciation - Tunnels
• 127970 Accumulated Depreciation – Right to Use Land
• 127971 Accumulated Depreciation – Right to Use Buildings
• 127972 Accumulated Depreciation – Right to Use Machinery & Equipment
• 127973 Accumulated Depreciation – Right to Use General Infrastructure
• 127974 Accumulated Depreciation – Subscription (SBITA) Asset
• 127976 Accumulated Depreciation – Right to Use PPP/SCA Assets