Fayetteville Policies and Procedures  305.2 

Capitalization Thresholds for Buildings/Facilities and Other Improvements/Infrastructure

Overview:  This policy establishes capitalization thresholds for buildings, facilities, other improvements, and infrastructure to ensure compliance with Governmental Accounting Standards Board (GASB) requirements and State of Arkansas capital asset guidelines.  This policy is part of a broader University capitalization policy framework that addresses different property types, including Fayetteville Policies and Procedures 305.1, Capitalization of Intangible Assets, and 313.2, Inventory/equipment Capitalization Thresholds. Together, these policies ensure consistent application of capitalization standards across all property categories for purposes such as accounting, financial reporting, and asset tracking.

A building is a structure, with a historical cost equal to or greater than $100,000, which is permanently attached to the land, has a roof, is partially or completely enclosed by walls, and is not intended to be transportable or moveable.

Building improvements are expenditures that materially extend the useful life of a building or increase the value of the building or both. A building improvement is to be capitalized as a betterment and recorded as an addition of value to the existing building if the cost for the improvement is equal to, or greater than $100,000.

Facilities and other improvements (Land improvements) consist of betterments, site preparations and site improvements (other than buildings) that ready land for its intended use. The costs associated with improvements to land are capitalized in the category improvements to land. Such improvements will be capitalized if the cost for the improvement is equal to, or greater than $50,000.

Infrastructure items are assets that are long-lived capital assets, with a cost equal to or greater than $50,000, which normally are stationary in nature and can be preserved for a significantly greater number of years than most capital assets.

Infrastructure improvements are capital expenditures that materially extend the useful life or increase the value of the infrastructure, or both. Infrastructure improvements are to be capitalized as a betterment and recorded as an addition of value to the infrastructure if the improvement or addition of value equal to, or greater than $50,000.

Examples of Facilities and Other Improvements, and Infrastructure
Facilities and Other Improvements
  • Fencing and Gates
  • Landscaping
  • Parking Lots/Driveways/Parking Barriers
  • Outside Sprinkler Systems
  • Recreation Areas & Fields
  • Golf Course
  • Paths and Trails
  • Septic Systems
  • Swimming Pools, Tennis Courts
  • Retaining Walls
Infrastructure
  • Highway System
  • Road/Street (curbs, gutters)
  • Bridges
  • Sewer
  • Railroad
  • Canal
  • Waterway
  • Drainage Facility
  • Wharf or dock
  • Radio or Television Tower
  • Dam
  • Electric (lines & distribution)
  • Gas (main & lines)
  • Water lines
  • Fiber Optic
  • Telephone Distribution Systems
  • Tunnels (utility)
  • Tunnels (other)
  • Lighting Systems (traffic, outdoor, street, etc.)
  • Signage
  • Fire Hydrants
  • Agricultural Irrigation Systems
  • Sidewalks

Revised February 2, 2026
Reformatted for Web May 28, 2014
August 14, 2002