Get Aicpa Sample Capitalization Policy

Filling out the Aicpa Sample Capitalization Policy online is essential for establishing your organization's accounting practices regarding capital assets. This guide offers clear, step-by-step instructions to ensure you accurately complete the policy and comply with relevant regulations.

Follow the steps to complete the Aicpa Sample Capitalization Policy efficiently.

1. Press the ‘Get Form’ button to access the policy document and open it in the designated online platform.
2. In the first section, titled 'Purpose', clearly state the capitalization amount that will determine which assets are recorded. Ensure that the amount complies with IRS de minimis provisions.
3. In the 'Capital Asset definition' section, indicate the cost amount that qualifies an asset as a capital asset, ensuring the specified amount aligns with your organization's accounting standards.
4. In the 'Capitalization thresholds' section, enter the threshold amount for minimum capitalization, detailing any expenses below that amount that will not be recorded as capital assets.
5. For the 'Capitalization method and procedure' section, describe how all capital assets should be recorded at historical cost and clarify how assets below the threshold will be expensed.
6. In the 'Recordkeeping' section, include the requirement for retaining invoices that substantiate the acquisition cost of property for a minimum of four years.
7. Once all sections are completed, review the document for accuracy, and then save your changes. You may choose to download, print, or share the completed form as needed.

Start completing your Aicpa Sample Capitalization Policy online today to ensure compliance and effective financial management.