With the exception of Land and Rare Works, all Fixed Assets are depreciated using the straight-line method over the useful life of the appropriate asset class.
The following table summarizes the estimated useful lives for the DIU’s depreciable asset types:
Asset Type Estimated Useful Life
Buildings 80 years
Improvements Life of original asset (min 20 years)
Leasehold Improvements Life of lease (max 15 years)
Furniture and Equipment 5-10 years
Vehicles 5-10 years
Computers 5 years
Library Books 10 years
These are general guidelines for asset classes and are considered by Financial Operations when assigning a useful life to a specific asset. Individual circumstances may warrant a deviation from the standard useful life of an asset.
Depreciation of Fixed Assets commences when the item is placed in service or is available for use.
Evaluation for Impairments
DIU management determines if there has been a triggering event that would cause impairment to any Fixed Assets under their supervision. The following are examples of events that may require an adjustment as an impairment or disposal of Fixed Assets:
• A significant decrease in the market price of a long-lived asset
• A significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition
• A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator
• An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset
• A current-period operating or cash flow loss combined with a history of operating cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset
• A current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life
If impairment is determined to exist, the Assistant Director/Deputy Director in Financial Operations should be contacted in order to reflect the impairment on the DIU’s books (in consultation with the Director, as necessary). Disposals should follow the disposal procedures noted below.