N.J. Admin. Code § 8:31B-4.20

Current through Register Vol. 56, No. 11, June 3, 2024

Section 8:31B-4.20 - Accounting for minor moveable equipment

(a) Minor moveable equipment includes such items as waste baskets, bed pans, silverware, mops, buckets, etc. The general characteristics of this equipment are:

1. In general, no fixed location and subject to use by various departments within a hospital;

2. Comparatively small in size and unit cost;

3. Generally, a useful life of less than three years.

(b) There are three ways in which the cost of minor moveable equipment may be recorded:

1. The original cost of this equipment may be capitalized and not depreciated. Any replacements of or additions to this base stock would be charged to operating expense.

2. The original investment in this equipment may be capitalized and written off over three years. All subsequent purchases would be written off over three years.

3. All purchases of minor equipment may be capitalized and depreciated over their estimated useful lives.

(c) Once a hospital has elected one of these methods, that method must be used consistently thereafter.

N.J. Admin. Code § 8:31B-4.20