What is Fabricated Equipment?
Fabricated equipment is defined as scientific or other complex equipment comprised of a number of individual components that are fabricated/built into a single functional unit. Fabricated equipment is capitalized as a single asset for a combined total cost in excess of $5,000 and a useful life greater than one year. All components must function as a singular unit and will be collectively disposed of at the end of the life of the equipment. Individual components cannot be used independently of the remaining pieces of fabricated equipment and cannot function separately apart from the fabricated unit to which it is attached.
- If fabrication of equipment at Boise State is anticipated, a cost estimate of the completed equipment should be developed based on required materials and components.
- Only materials purchased to create the equipment and external services provided (shipping, delivery and installation) will be capitalized. Departmental labor is excluded from the cost to build fabricated equipment.
- Characteristics of fabricated equipment:
- Unique, specialized equipment
- Not commercially available
- Useful life of more than one year
- Aggregate cost of materials and services is $5,000 or more
- May require sponsor approval
- When completed, the asset will remain and be used within the confines of Boise State’s facilities