N.M. Admin. Code § 2.20.1.11

Current through Register Vol. 36, No. 1, January 14, 2025

Section 2.20.1.11 - GENERAL ACCOUNTING PROCEDURES

A. Property, and equipment acquired by general, special revenue, and capital projects funds are brought under accounting control by the creation of a "general fixed asset account group." In accordance with generally accepted accounting principles, general fixed assets are recorded at acquisition cost. If the cost of fixed assets was not recorded when the assets were acquired and is unknown when accounting control over the assets is established, it is acceptable to record them at estimated cost. The offset to the fixed asset accounts is the set of equity accounts that indicate the sources from which the fixed assets were acquired.

B. Internal service funds account for all fixed assets similar to private sector business enterprises. That is, fixed assets are used to generate revenues to be used in their operations; therefore, they are accounted for in the internal service fund in which they reside. Fixed assets are depreciated based on their cost and expected service life. Depreciation methodologies and charges to depreciation expense should be consistent with generally accepted accounting principles.

C. Fixed assets in nonexpendable trust funds are accounted for directly in their respective financial statements.

N.M. Admin. Code § 2.20.1.11

09-30-99; Recompiled 10/01/01, Adopted by New Mexico Register, Volume XXX, Issue 24, December 31, 2019, eff. 12/31/2019