Section 1108.20 - Acquisition costAcquisition cost means the cost of an asset to a recipient or subrecipient, including the cost to ready the asset for its intended use.
(a) For example, when used in conjunction with:(1) The purchase of equipment, the term means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it is acquired.(2) Equipment that a recipient or subrecipient constructs or fabricates - or software that it develops - under an award, the term includes, when capitalized in accordance with generally accepted accounting principles (GAAP):(i) The construction and fabrication costs of that equipment; and(ii) The development costs of that software.(b) Ancillary charges, such as taxes, duty, protective in-transit insurance, freight, and installation may be included in, or excluded from, the acquisition cost in accordance with the recipient's or subrecipient's regular accounting practices.