600.6 Depreciation of Capital Assets

Depreciation is defined as, "the accounting process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. Depreciation is not a matter of valuation but a means of cost allocation. Assets are not depreciated on the basis of a decline in their fair market value, but on the basis of systematic charges to expense."

PSU uses straight-line depreciation with zero salvage value, and useful lives that vary depending on the type of asset. Refer to the asset type table and depreciation account code maintained by the Controller's Office.

The procedures manual provides additional detail of depreciation policies by account code. The information included is integral to this policy.