Effective: April 1, 2016
Section: Public Property
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

POLICY   

All tangible capital asset (TCA) expenditures of $50,000 or more, unless a lower threshold has been approved by the Comptroller General, are to be:

• Segregated into major components;
• Recorded as a capital investment(s); 
• Amortized over the useful life of the applicable tangible capital asset(s), utilizing approved methods and rates.

PURPOSE

To establish the dollar threshold that must be met to record an expenditure as a tangible capital asset (TCA), the requirement for recording major components as separate TCAs, set amortization periods for the various asset categories, and establish the amortization method (e.g. straight line) to be used.

TCAs are a significant economic resource managed by GNWT Departments and Public Agencies. The CPA Canada Public Sector Accounting Handbook has been adopted within the Financial Administration Act (FAA) and provides guidance on most aspects related to recording TCAs, qualifying costs, recognition and carrying value.

SCOPE

This policy applies to all tangible capital asset expenditures. This policy does not apply to intangible assets, natural resources, and Commissioner or Territorial lands.

RESPONSIBILITIES

Deputy Head

Ensure that adequate records are kept in respect of public property; ensure that sufficient knowledge is available within GNWT Departments or a Public Agency.

Comptroller General

May approve Interpretation Bulletins associated with this policy.

Financial Management Board

Approve the threshold for TCAs that will be included within the Consolidated Public Accounts; may issue a directive respecting the financial management or financial administration of a Public Agency.

AUTHORITIES and REFERENCES

• Financial Administration Act (FAA)
  • s.  7 – Duties: Board
  • s. 10 – Board Directives
  • s. 16 – Comptroller General
  • s. 25  - Financial Duties of Public Agencies
  • s. 66 – Records of public property
  • s. 67 –Disposal of public property
  • s. 105 – Deletion of inventory from the revolving fund
• CPA Canada Public Sector Accounting Handbook
• PS 3150 – Tangible Capital Assets
• CPA Canada Handbook – Accounting

INTERPRETATION BULLETINS