(1) Tangible or intangible assets used in operations having a useful life of more than one year
which are capitalized in accordance with GAAP. Capital assets include:
(i) Land, buildings (facilities), equipment, and intellectual property (including software)
whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for
as financed purchase under Government Accounting Standards Board (GASB) standards or a finance
lease under Financial Accounting Standards Board (FASB) standards; and
(ii) Additions, improvements, modifications, replacements, rearrangements, reinstallations,
renovations or alterations to capital assets that materially increase their value or useful life
(not ordinary repairs and maintenance).
(2) For purpose of this part, capital assets do not include intangible right-to-use assets (per
GASB) and right-to-use operating lease assets (per FASB). For example, assets capitalized that
recognize a lessee's right to control the use of property and/or equipment for a period of time
under a lease contract. See also § 200.465.
» Glossary of Terms, Acronyms and Definitions
