| Issue Date: | 1991-09-01 |
|---|---|
| Revised Date: | 2001-09-01 |
Object Type
Cash — Real Property
Reference
Specific definitions for capitalized, controlled and expensed asset classifications are located in the SPA Process Users Guide.
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)
Note
This code does NOT include:
- Interest (7802)
USAS Values
| Appropriation Year | 25 |
|---|---|
| USAS Title | RP-INFRASTRUCTURE/TELECOMM/CAPITAL LEASE |
| Object Group | 10 – Expenditures |
| USAS Status | A |
| Rev/Exp Category | 13 – CAPITAL OUTLAY |