Texas State University-San Marcos Annual Financial Report: 2012 Page: 18
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UNAUDITED
Texas State University-San Marcos (754)
NOTES TO THE BASIC FINANCIAL STATEMENTS
CAPITAL ASSETS AND RELATED DEBT ACTIVITY
Purchases for assets with an estimated useful life in excess of one year exceeding the university's capitalization thresholds are
recorded as capital assets at their acquisition cost on the date of acquisition. Donated assets with an estimated useful life in
excess of one year exceeding the university's capitalization thresholds are recorded as capital assets at their fair market value
on the date of acquisition. Intangible capital assets are defined as assets that lack physical substance, are nonfinancial in nature
and have an initial useful life extending beyond a single reporting period. Routine repairs and maintenance that do not increase
the value of buildings are charged to operating expense in the year in which the expense was incurred.
The university's capitalization thresholds are:
Asset Category Capitalization Threshold
Land, land improvements, and land use rights All acquisitions are capitalized
Books and materials for the university's academic and research library All acquisitions are capitalized
Works of art and historical treasures not held for financial gain All acquisitions are capitalized
Furniture, equipment, and vehicles $5,000
Buildings, building improvements, facilities and other improvements $100,000
Purchased computer software and land use rights (A) $100,000
Infrastructure $500,000
Internally generated computer software $1,000,000
(A) Applies only to land use rights considered to have a limited useful life (TERM.)
Assets are depreciated or amortized over the estimated useful life of the asset using the straight-line method as follows:Buildings, Infrastructure and Facilities 10-30 years
Furniture and Equipment 4-15 years
Vehicles 5-10 years
Other Assets 15 years
Purchased and Internally Developed Software 5 years
Other Tangible Assets 10 years
TERM Land Use Rights 10 yearsAll land, land improvements, land use rights, and works of art and historical treasures not held for financial gain are considered
to have an indefinite useful life. Because these assets are inexhaustible, they are not depreciated.
New bonded indebtedness is issued by the Texas State University System Revenue Financing System. The System
Administration Office and each component institution within the system comprise the Revenue Financing System. Although
the university must repay the debt that was issued on its behalf, the associated bond liability is reported in total by the System
Administration Office and is not included in the liabilities of the university in the university's financial statements. Debt
service requirements reported by the System Administration Office and attributable to Texas State are disclosed in Note 6,
Bonded Indebtedness.
ACCOUNTS PAYABLE
Accounts payable represents the liability for the value of assets or services received at the statement of net assets date for
which payment is pending.
OTHER PAYABLES
Other payables are the accrual at year-end of expenditure transactions not included in any of the other payable descriptions.
DEFERRED REVENUESAnnual Financial Report -for the fiscal year ended August 31, 2012
Deferred revenues represent payments received in advance of providing goods or services.
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Texas State University--San Marcos. Texas State University-San Marcos Annual Financial Report: 2012, report, Autumn 2012; San Marcos, Texas. (https://texashistory.unt.edu/ark:/67531/metapth578530/m1/22/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.