Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

7.12 Construction in Progress

7.12.1 Construction in Progress Definition

(Last Modified on May 1, 2017)

Construction in progress reflects the economic construction activity status of buildings and other structures, infrastructure (roadways, energy distribution systems, pipelines, etc.), additions, alterations, reconstruction, installation, and maintenance and repairs that are substantially incomplete.

7.12.2 Depreciation Amortization Methodology

(Last Modified on May 1, 2017)

Depreciation is not applicable while assets are accounted for as construction in progress. Refer to the appropriate capital asset category when the asset is capitalized.

7.12.3 Capitalization Threshold

(Last Modified on May 1, 2017)

Construction in progress assets should be capitalized to their appropriate capital asset categories upon the earlier occurrence of execution of substantial completion contract documents, occupancy, or when the asset is placed into service.

(Last Modified on May 1, 2017)

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