This portion of the book provides an overview and helpful documents related to capital leases and capital purchases at Indiana University.

Understanding capital leases and purchases is essential for Indiana University to effectively manage financial resources and make informed decisions. From an accounting perspective, capital leases and purchases have significant implications on the university’s financial statements, including the balance sheet, income statement, and cash flow statement. Properly processing these transactions involve accurately recording the assets acquired, liabilities incurred, and related expenses or depreciation over the useful life of the assets. Additionally, it is important to both understand and properly account for factors such as lease terms, interest rates, and buyout options when evaluating the financial impact of capital leases versus purchases. By understanding and effectively processing capital leases and purchases, IU can maintain financial stability, make strategic investment decisions, and demonstrate accountability to stakeholders.

Policies

Review the below policies related to capital purchases and leases:

• FIN-ACC-140: Off-Premise Capital Equipment Control
• FIN-ACC-150: Ownership, Depreciation, and Capitalization of University Assets
• FIN-GCA-70: Equipment Transfers

Standards

Review the below standards related to capital purchases and leases:

• C SOPS
  

Checklists

Training Materials

Review the below training materials related to capital purchases and leases:

Other Related Materials

Review the below other materials related to capital purchases and leases:

• Capital Asset Type Code List
• Capital Asset Management System Attestation Form
• Certificate of Substantial Completion for Moveable Fabrication Capital Asset Form
• Impairment of Capital Asset Acknowledgement Form
• Pollution Remediation Obligation Acknowledgement Form
• Lease vs. Purchase Cost/Benefit Analysis Worksheet

IU Financial SYSTEM REPORTS and Procedures

Review the below IU financial system reports and procedures related to capital purchases and leases:

• Untagged Assets Report
• Asset Detail List Report
• Equipment Loan Report