USA Fixed Asset Threshold

[bklynboy]

I am looking to change my company's threshold for capitalizing fixed assets. Our current policy is $1000 which creates significant work each month and seems low given we generate $14 billion of annual revenue and $2B of earnings. I am curious what others are doing so that I have a base of reference. My thoughts are I need to create varying thresholds (i.e. $5000 or software/hardware, $1 million for internally developed, etc) as each asset class should be looked at differently. What do you do?

 

[dave1969]

For benchmarking purposes, my company generates $10B in revenue and $300M in NI (tight margins in health insurance). Our thresholds are as follows:

Furniture and Equipment: $10K
Building/Leasehold Imporvements: $50K
Commercial off the shelf Software: $100K
Software major enhancements: $50K
Internally Developed Software: $250K

We have an exception to the rules in the case of a "controller designated project". An example of such would be the build-out of an exeuctive office, in such case the total project cost - and not the individual underlying costs - are aggregated to determin if the project as a whole is eligible for capitalization.