Capital Assets Policy

Vancouver Community College (VCC; the College) is responsible for taking appropriate and reasonable measures to account for all capital assets.

The purpose of this policy is to develop clear standards for the administration, maintenance, control, safeguarding, acquisition, and disposal of capital assets at VCC.

This policy applies to all employees of VCC and to all VCC funded capital assets. It does not apply to Ministry of Post-Secondary Education and Future Skills funded capital requests, per established guidelines.

1. VCC will account for all capital assets in accordance with Public Sector Accounting Board (PSAB) standards.


2. The Finance department is responsible for overseeing the acquisition and accounting of all capital assets.


3. All VCC employees are responsible for the use, care and safeguarding of capital assets.

Amortization

An expense that reflects the consumption of an asset over its useful life, allocated over a designated period of time for accounting purposes.

Budget Officer

An individual responsible for managing the budget within their area of responsibility.

Building Improvements and Betterments

The cost incurred to enhance the service potential of a capital asset as per PSAB guidelines.

Capital Assets

Significant pieces of property owned by the College that are:

a. Equal to or greater than $5,000 in value;
b. Held for use to provide economic benefit beyond the current fiscal year; and
c. Not intended for sale in the regular course of operations.

Capital Lease

An agreement in which the lessee acquires property or equipment with a useful life extending beyond a fiscal year, and is held under lease by the entity for use in the production or supply of goods and services, as per Public Sector Accounting Board (PSAB) guidelines.

Cost

The cash amount or equivalent given up to acquire, construct, develop or better an asset including installing the asset at the location and in the condition necessary for its intended use.

Employee

An individual who is currently employed by VCC on a full-time, part-time, permanent, temporary, term, casual or contract basis.

Leasehold Improvement

Betterment made to leased property as outlined in PSAB guidelines.

Net Book Value

The value of an asset, factoring in diminutions, amortizations, and other accounting charges, as recorded in an organization's or individual's accounts.

Non-capital asset

Operating expenses and other short-term costs incurred through normal operations throughout the course of a fiscal year, such as supplies and services.

Operating Lease

An agreement in which the lessee acquires the property for only a small portion of its useful life, commonly used to acquire equipment on a short-term basis.

Repairs and Maintenance

Operating expenses that maintain the functionality of a capital asset but do not extend the life of that capital asset; including but not limited to repairs to roofs, and the repainting of buildings or interior offices.

Useful Life

The estimated period of time over which a capital asset is expected to be used by the College.

• Appendix A: Capital and Non-Capital Assets

• Use of College Supplies, Products, Services, and Facilities (142)
• Procurement (130)

• College and Institute Act, RSBC 1996, c 52


• CPA Handbook


• PS3210 – Assets


• PS3150 – Tangible Capital Assets


• PSG-2 – Leased Tangible Capital Assets