-
Total replacement value to be placed into the appropriate reserve will
be determined in each instance.
-
The replacement time for each physical asset will be determined on the
date of purchase. Either the entire replacement amount in the year of
purchase or equal annual instalments commencing with the year of
purchase will be placed into the appropriate reserve.
-
In the event that sufficient funds are not in place to cover
the purchase of a specified physical asset, the balance of the cost
will be accounted for in the year of purchase.
-
If the cost of purchasing and replacing a physical asset is
less than the amount assigned for that specified physical asset, the
surplus may be transferred to the operating budget for the year of
purchase.
|
