State of Texas – Fiscal Management

Manual of Accounts

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Expenditure Object 7519 – Real Property - Infrastructure - Telecommunications - Capital Lease
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Object Type: Cash — Real Property
Reference: Specific definitions for capitalized, controlled and expensed asset classifications are located in the SPA Process Users Guide.
Issue Date: 1991-09-01
Revised Date: 2001-09-01

Description


To record payment for a capital lease of telecommunications infrastructure.

To qualify as a capital lease, the lease agreement must meet any one of the following criteria:

  • The lease transfers ownership of the property to the lessee by the end of the lease term.
  • The lease contains a bargain purchase option.
  • The lease term is equal to 75% or more of the estimated economic life of the lease property.
  • The present value of the minimum lease payments at the inception of the lease, excluding executory costs, equals at least 90% of the fair value of the lease property.

Expenditure code 7519 includes, but is NOT limited to:

  • Cellular Telephone (lease purchase)
  • Lease Purchase (telephone equipment)
  • Telecommunications Equipment (lease/purchase)


Notes


This code does NOT include:

  • Interest (7802)


USAS Values


Appropriation Year 26
USAS Title RP-INFRASTRUCTURE/TELECOMM/CAPITAL LEASE
Object Group 10 – Expenditures
USAS Status A
Rev/Exp Category 13 – CAPITAL OUTLAY



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