POLICIES AND PROCEDURES

Capex Policy
Last Modified: 18/8/2020
Review Date: 30/06/2022
Policy Manager: Chief Operating Officer
Approval Authority: Vice-Chancellor

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1. PURPOSE

This policy is required to provide assurance that capital expenditure incurred by the University and its

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subsidiaries is consistent with the strategic directions of the University, demonstrates prudent
investment practices, is planned and evaluated in accordance with authorised processes, is in compliance
with laws and regulations, is committed within funding and budgetary constraints, is consistent with the
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oversight and direction of the Capital Asset Committee of Council, and is consistently monitored and
reported across the University and its subsidiaries.

This policy is aligned to the Capex Prioritisation Process which sets out a formalised process for selection,
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approval and monitoring of capital expenditure.
This policy applicable for all operations and activities of the University, its research institutes and faculties,
and its subsidiaries, trusts and joint ventures.
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2. DEFINITIONS

Capital Expenditure or CAPEX – capital expenditure includes all items of expenditure for the purchase,
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upgrade or construction of physical or intangible assets, where the expenditure has value beyond the
current year. Includes all costs directly attributable to the capital asset, including purchased and in-house
labour, and costs incurred in designing, preparing, building, commissioning, testing, and purchasing the
capital asset, and bringing the capital asset to a working condition for its intended use. Excludes costs
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incurred on projects that are unlikely to be approved or proceed to completion. All items of capital
expenditure requiring clarification will be reviewed by the Finance Director to confirm compliance with
the capital expenditure policy and the accounting policies of the University.
Capital Asset Committee (CAC) – is a committee of the Lincoln University Council whose terms of
reference are primarily focused on the Campus development plans, capital activities and major capital
projects, capital disposals, capital budgeting and funding, integration of capital plans of subsidiaries,
optimization of the overall asset portfolio, and associated risk assessment and monitoring of major
capital projects.
Audit and Risk Committee (ARC) - is a committee of the Lincoln University Council whose terms of
reference are primarily focused on financial reporting and internal controls, strategic risk management,
health and safety and Internal Audit.

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 Assets - includes all items, either tangible or intangible, that have the potential to contribute future
economic benefits in the form of inflows of cash or cash equivalents. Includes library books and serials
as defined. Expenditures on assets are included on the reporting entity’s balance sheet. If the potential
or intended realisation is within 12 months, the asset is included in “current assets”, otherwise it is
included with non-current assets. Excludes investments covered by the Treasury Policy.
Capital Asset Management Working Group (CAMWG) – is responsible for the delivery of the university
wide Capital Asset Management improvement plan, which includes reviewing reinvestment options and
recommendations. CAMWG also recommends the annual capital budget to CAC and the University
Council.
DCF – Discounted Cash Flow – a valuation method used to estimate the attractiveness of an investment or
development opportunity. This method uses future free cash flow projections and discounts them to a
present value estimate.
FAR – Fixed Asset Register – the accounting system which records the purchase, sale, transfer or disposal

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of all fixed assets, for the purposes of monthly and annual reporting, depreciation calculation, asset
management and security.
Library books and serials – includes printed books, serials, electronic books and datasets which have been

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acquired with terms of perpetual access.
Minor Capex – comprises all capital expenditure projects or separate items totaling less than $25,000.
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Minor equipment expenditure – equipment and related expenditure items less than $2,000, which are not
required to be accounted for as capital expenditure purchases, but are budgeted, approved and accounted
for as part of operating expenditure.
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Major Capex – comprises all capital expenditures projects or separate items totaling $25,000 or more.
SMG – Senior Management Group.
Operating Lease – a lease agreement where the lease does not transfer substantially all the risks and
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rewards incidental to asset ownership, and as determined by prevailing accounting policies required for
IFRS compliance in New Zealand.
Finance Lease - a lease agreement where the lease does transfer substantially all the risks and rewards
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incidental to asset ownership to the University, and as determined by prevailing accounting policies
required for IFRS compliance in New Zealand.
Total Cost of Ownership (TCO) – refers to all costs, benefits and other considerations occurring in the full
life cycle of the capital asset, including: (a) design, build, maintain, finance, depreciate and operate; (b)
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sell, demolish, replace; and (c) remediation of any environmental issues at the end of the capital asset’s
life.

3. OUTCOMES

This policy seeks to:

Ensure capital expenditure is incurred with appropriate prior due diligence and approval, is consistent with
the strategic objectives, and is undertaken within the funding and budgetary constraints of the
organisation.
Ensure the documentation supporting capital expenditure is consistent with good effective governance and
record-keeping.
Ensure the accounting treatment applied to capital expenditure is consistent with the established approved
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 accounting policies of the organisation.

4. POLICY

4.1 Capital expenditure can be undertaken only under the direct or delegated authority of the Vice-
Chancellor, the Council or its delegated authority conveyed by the Council to the Capital Assets
Committee.

4.2 In practice the University maintains effective control of capital expenditure through the following
processes:

4.2.1 The annual programme of capital expenditure follows a capital investment prioritisation model and
decision making process, which includes a rigorous evaluation of competing priorities, projects and
business cases, with priority given to capital expenditure projects best aligned to the strategic
priorities of the Lincoln University Group.

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4.2.2 The annual programme of capital expenditure is assessed against the financial KPI’s and funding
constraints of the organisation, as well as other compliance, risk mitigation and strategic priorities
of the organisation, and the resulting annual capex budget is approved for each new financial year.

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4.2.3 Authorisation of each item of capital expenditure is required in line with the Delegations of
Authority policy.
4.2.4 Capital expenditure projects requiring Council approval must be submitted in advance to the
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Capital Asset Committee, with a fully documented business case in line with section 6 for their
review, who will recommend either approval or rejection to Council.
4.2.5 Capital expenditure is effectively monitored on an ongoing basis for compliance with policy and
authorisation limits.
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4.3 Capital expenditure is managed in accordance with the Capex Prioritisation Process, which classifies
capex in the following classes: Minor Capex for capital expenditures less than $25,000; Major Capex for
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projects and capital expenditures greater than $25,000; and Research and Teaching capital expenditures
required for delivery of research and teaching capability.

4.4 All Major Capex will require supporting documentation that includes: links to University strategies; a clear
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business purpose; a formal options analysis; stakeholder consultation outcomes or considerations;

references to related or consequential capital projects; a “do nothing” option and risk assessment;
completion of the prioritisation assessment; and compliance with TEC or Crown requirements. These
may include new business opportunities in teaching or research programmes, quality and efficiency
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enhancements, such as plant and equipment upgrades, and replacements or capital expenditure required
for statutory compliance.

4.5 All capital expenditure approval requests must clearly indicate the source of capex budget funding, which
could be one of the following – minor capex, major capex, research capex, teaching capex, rollover funds
or external research funds. In the event that priorities change and unbudgeted or unplanned capex is
proposed, funding through re-prioritisation of other previously approved capital expenditure projects will
be required, with appropriate approvals per the Delegations of Authority Policy.

4.6 This policy applies to all capital expenditure, irrespective of funding sources.

4.7 Managers requesting formal approval of capital expenditure are responsible for the accuracy of
information contained in the project details, and for ensuring that this policy is followed and the
associated capital approval request forms are completed fully.

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4.8 There is no fixed rate of return which automatically qualifies authorisation for capital expenditure.
However, capital expenditure projects should always seek to render returns in excess of the University’s
weighted average cost of capital, currently estimated at 10% per annum, unless the primary motivation
of the capex project is non-commercial, where there may be other compelling strategic reasons.

4.9 For every capital project, a nominated “Responsible Manager” is to be given specific responsibility for
overall implementation of the project and for securing the project benefits. They are also responsible for
completing the monitoring of the project and the completion of the post implementation reviews (refer
section 8).

4.10 All capex spend is required to be reviewed and signed off by the Procurement Department, who have
oversight of procurement processes, options, suppliers and overall optimisation of the capital purchases
and spend. Additionally, all capex that includes IT or services and facilities or teaching components
requires the review and sign-off by the appropriate manager (ITS – Director, Information Technology
Services; Teaching equipment – Director, Learning, Teaching and Library).

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4.11 The Chief Operating Officer, after consultation with the SMG and the CAMWG, will confirm the
prioritisation of the capital expenditure budgets and all competing major capital projects, to ensure
appropriate allocation of scarce capital resources, compliance with the Delegations of Authority policy,

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and ongoing compliance with the financial priorities set by the University Council.

4.12 Approved capital projects that are planned to run over more than one financial period will maintain their
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approval for capex spend in the subsequent financial year/s. The general budget for ‘minor capex’ must
be re-approved on an annual basis as part of the annual budgeting process.

4.13 All capital expenditure projects and approvals which exceed the Vice-Chancellor’s delegation of authority
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must be approved by Council. All capital expenditure above the VC delegation must be reviewed in
advance and endorsed by the Capital Asset Committee, prior to the distribution of Council papers.

4.14 All capital expenditure projects and approvals that have property or lease implications must be reviewed
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in advance for reasonableness by the Finance Director and the Property Manager. Any requests for
extension of existing expenditure leases or signing of new leases in excess of 12 months duration must be
supported by a Discounted Cash Flow (DCF) calculation.
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4.15 Minor equipment expenditures and related costs (in total less than $2,000) not designated and processed
as capital expenditures must be accounted for within the approved operating budgets of the business
units.
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4.16 Capital expenditure includes all expenditure incurred by the University which is charged either initially or
subsequently to the fixed asset register, whether purchased externally or generated internally.
Guidelines on the distinction between capital expenditure and repairs and maintenance outlined in
Appendix 1.

4.17 Capital expenditure must comply with the accounting policies as outlined in the University’s Annual
Report and as is required for ongoing IFRS compliance. The capex approval documentation and review
process must confirm compliance with these policies. If in doubt, discuss with the Finance Department.

4.18 Managers and staff who wish to raise a capital expenditure project or who have a need for capital
expenditure can contact the Finance Department or Finance Director for assistance or guidance to ensure
their needs are assessed and met, efficiently and effectively.

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5. CAPITAL EXPENDITURE CLASSIFICATION

For purposes of recording the capital expenditure in the FAR, all capital expenditure is to be classified as
per the guidance in Appendix 2.

6. CAPITAL EXPENDITURE PROJECT DOCUMENTATION AND APPROVAL LIMITS

The level of financial analysis, documentation and approvals required in support of capital expenditures is
outlined below. Approvals are as per the Delegations of Authority Policy.

Class of Spending Threshold Documentation Approval

Maximum(*)

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Minor Capex <$25k Capital Expenditure Form (<$25,000) COO delegation is up
and prioritisation assessment. to $250k

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Approvals as indicated on the form
and as per Delegations of Authority
Policy
Major Capex >$25k
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Capital Expenditure Form (>$25,000) Level 2 up to $100k
and prioritisation assessment. provided within
Approvals as indicated on the form approved capex
and per the Delegations of Authority budget
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Policy. COO up to $250k
VC $250k-$500k
Council over $500k
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Property Leases - Sum of minimum Capital Expenditure Forms Approvals COO <$250k
financing lease payments as indicated on the forms. VC $250k-$500k
Council over $500k
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Minor Equipment Under $2k Quote / Order Per Schedule of

Expenditure – Delegated Authority
budgeted within for operating
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operating expenditure expenditures

(*) Maximum approval limits are derived from and must comply with the policy for Delegations of Authority and
Schedule of Limits of Delegated Authority, which are subject to change from time to time.

6.1 For all capital expenditure which is not a property lease in 5.1 to 5.5 the appropriate capital expenditure
form should be used as follows:
Capital Expenditure – below $25k
http://hub.lincoln.ac.nz/corporate2016/SiteAssets/SitePages/Forms/LU%20CAPEX%20Form%20-
%20below%20$25K.DOCX

Capital Expenditure – above $25k

http://hub.lincoln.ac.nz/corporate2016/SiteAssets/SitePages/Forms/LU%20CAPEX%20BUS%20CASE%20F
ORM%20-%20above%20$25K.DOCX

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 6.1.1 Capital expenditures greater than $250,000 (which require VC or Council approval) require a
more comprehensive business case aligned with current approved strategy, and should include
other supporting documentation such as expert opinions and evaluations, procurement
competitive tendering processes and strategies, and financial evaluations (discounted cash flows
(DCF) or net present values or IRR’s as appropriate). Financial models prepared should be
incremental business based models.

6.1.2 For large infrastructure projects of greater than $2,000,000, which require Council approval, the
business case approval documentation may require external quality assurance or peer reviews in
addition to expert advice and reports as part of the capital project due diligence and approval
processes.

6.2 For classification 5.16, Property Leases:

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6.2.1 Property leases that require to be treated as operating leases for accounting purposes must
comply with the Delegations of Authority policy applicable for operating expenditures, with lease
costs treated as an operating expense, through the statement of revenue and expense. The sum

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of the minimum lease payments will determine the level of documentation and approval
required. As a minimum the proposed lease agreement and a cost benefit justification for lease
vs buy should be provided.
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6.2.2 Property leases that require to be treated as finance leases/capital purchases and capitalised on
the balance sheet, must follow the documentation and approvals per 6.1 above.
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6.2.3 Rent reviews and extensions of existing capitalised leases must also follow the policy guidance
per 6.1 above, with the sum of the minimum lease payments determining the level of
documentation and approvals required.
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6.2.4 The pending change in the accounting standards for property leases needs to be carefully
considered. This capex policy document will be reviewed and updated when pending changes to
leasing accounting standards are clarified or pronounced.
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6.3 For all capital expenditure projects requiring the Council’s approval, the business case and supporting
documentation must include an assessment of the “whole of life” costs and considerations in support of
the evaluation and approval process.
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7. MONITORING AND REPORTING OF CAPITAL EXPENDITURE PROJECTS

7.1 All approved Capital Expenditure projects must be appropriately monitored to ensure compliance with
policy and prior approvals.

7.2 Where actual capital expenditure for a Council approved project exceeds or is likely to exceed the
approved capital budget, the Responsible Manager must, as soon as possible but no later than 3 months
after becoming aware of such likely or actual overrun, prepare a paper for the Capital Assets Committee
requesting approval by Council.

7.3 Where capital expenditure for all other approved projects exceeds or is likely to exceed the approved
budget, the Responsible Manager must as soon as possible but no later than 3 months after becoming

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 aware of such likely or actual overrun, update the project approval form and resubmit such for approval
as required by the policy for Delegations of Authority by the Vice-Chancellor.

8. PROJECT CLOSE-OUT AND REPORTING

8.1 For all building projects, and other projects as considered appropriate, within 3 months of the end of a
capital expenditure project or of bringing the asset into use, the Responsible Manager of the capex
project must ensure a Capex Project Close-out Report is completed.

8.2 The primary purpose of the Close-out Report is to inform all stakeholders that the asset is now in use,
that depreciation of the asset can commence, and also informs accounting of the appropriate asset
classifications to apply the appropriate depreciation rates to.

9. POST IMPLEMENTATION REVIEWS

9.1 All approved capital expenditures of greater than $250,000 are subject to a post implementation review

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at 12 and 24 months subsequent to completion, implementation or the date of bringing the asset into
use.

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9.2 The purpose of the review is to demonstrate good governance regarding effective capital expenditure
due diligence, approval, implementation processes, and benefits realisation.

9.3
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The post implementation review report must provide feedback on the investment performance
compared to the plan presented for approval, and must report on the actual capital expenditure incurred
compared to the approval capital expenditure budget.
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9.4 It is the responsibility of the Business Unit Manager to ensure a post implementation review is completed
and a report prepared for review by SMG.
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9.5 Post implementation review reports for capital projects:

• Greater than $1 million will be reviewed by Internal Audit, with any deficiencies reported to Capital
Asset Committee.
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• Between $250k –$1 million may be reviewed by Internal Audit on a sample basis, with any
deficiencies reported to CAC.

9.6 All capital expenditure forms and supporting documentation, investment plans and other due diligence
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reviews are to be provided to and kept on file by Finance Department, under the direct responsibility of
the Fixed Assets Accountant and Finance Director.

10. FIXED ASSET DISPOSALS

10.1 All fixed asset disposals must be accompanied by an approved fixed assets disposals/transfer form in
accordance with the policy for Delegations of Authority by the Vice-Chancellor (See links to form below).
All fixed asset disposals should be promptly and accurately updated to the FAR to ensure accurate asset
records are maintained for monthly and annual reporting and accurate calculation of depreciation
expenses.

10.2 Failure to complete asset disposal/transfer forms in a timely manner will result in an overstatement of
depreciation expenses and inaccurate asset records.

10.3 Disposal of capital items is specifically controlled under S192(4)(a) Education Act 1989.
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 • Land and Buildings.
All sales, disposals or demolitions of Lincoln owned land and buildings (or interests in land and
buildings) up to a value of $15 million may be disposed of without the prior approval of the
Secretary of Education, provided certain criteria are satisfied (refer Gazette notice per link below).
• Plant and Equipment.
All sales or disposals of plant and equipment above a certain dollar value limit must have prior
approval of the Secretary of Education. The disposal threshold is determined annually from the
most current audited accounts. The current threshold for Lincoln University is $200k per asset
item.

10.4 TEC guidance on asset disposal and approval thresholds – please refer to the following links

http://www.tec.govt.nz/teo/working-with-teos/tei/asset-management-teis/

http://www.tec.govt.nz/teo/working-with-teos/tei/asset-management-teis/sale-plant-equipment-
financial-assets/

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https://gazette.govt.nz/notice/id/2019-go155

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11. FIXED ASSET TRANSFERS ev
11.1 Internal transfers of fixed assets include all situations where fixed assets are transferred within business
units or wholly owned subsidiaries of the University. All other transfers must be treated as a disposal
with the above policy applicable.
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11.2 The Fixed Asset Disposals/Transfers form should be completed for all internal transfers of fixed assets.
See forms links below.

11.3 The Fixed Asset Disposals/Transfer form should be completed by the despatching Business Unit Manager
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and approved by the receiving Business Unit Manager as indicated.

11.4 Once approved, the Fixed Asset Disposals/Transfer form should be forwarded to the Fixed Assets
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Accountant in the Finance Department, who has responsibility for updating the fixed asset register and
relevant accounts.
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12. SUBSIDIARIES

While subsidiaries of Lincoln University are governed by separate boards of directors with separate policies for
delegation of authority and procurement, management and staff of the subsidiaries are expected to comply
with the objectives of this Capex policy that ensure effective documentation, due diligence, record keeping and
approval processes for capital expenditures by the subsidiaries.

13. RESPONSIBILITIES

Final approval for this policy must be given by the Vice-Chancellor, after consultation with the Senior
Management Group. Approval will be notified to the policy manager by the Chief Commercial Officer.

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14. LINKS TO PROCEDURE(S) AND OTHER RESOURCES

This policy must comply with and makes reference to the following policies and forms, all of which are available
on the Lincoln HUB:
▪ Delegations of Authority
https://dotnetrest.lincoln.ac.nz/O365flowClient/cache/sites/LPP/Published/Delegations%20of%20Author
ity%20Policy.pdf

▪ Schedule of Limits of Delegated Authority

https://lincolnuniac.sharepoint.com/sites/LPP/Internal/Schedule%20of%20Limits%20of%20Delegated%2
0Authority%20Guidelines.pdf

▪ Capital Asset Management Policy

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https://dotnetrest.lincoln.ac.nz/O365flowClient/cache/sites/LPP/Published/Capital%20Asset%20Manage
ment%20Policy.pdf

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▪ Capital Works Contract Management Policy
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https://dotnetrest.lincoln.ac.nz/O365flowClient/cache/sites/LPP/Published/Capital%20Works%20Contra
ct%20Managment%20Policy.pdf
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▪ Capex Prioritisation Matrix (<$25k)
http://hub.lincoln.ac.nz/corporate2016/Documents/Priority%20Matrix%20-
%20Minor%20Capex%20below%20$25k.xlsx
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▪ Capex Prioritisation Matrix (>$25k)

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http://hub.lincoln.ac.nz/corporate2016/Documents/Priority%20Matrix%20-
%20Major%20Capex%20above%20$25k.xlsx
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▪ Capital Expenditure Approval Form (<$25,000)

http://hub.lincoln.ac.nz/corporate2016/SiteAssets/SitePages/Forms/LU%20CAPEX%20Form%20-
%20below%20$25K.DOCX

▪ Capital Expenditure Approval Form (>$25,000)

http://hub.lincoln.ac.nz/corporate2016/SiteAssets/SitePages/Forms/LU%20CAPEX%20BUS%20CASE%20F
ORM%20-%20above%20$25K.DOCX

▪ Fixed Assets Disposal/Transfer Form

http://hub.lincoln.ac.nz/corporate2016/Documents/Asset%20Disposal%20form.docx

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For any support or information please contact the Fixed Assets Accountant or the Finance Director in the
Finance Department.
Revision Log

Date Amendments
25 March 2018 Policy drafted and amended
14 May 2018 Consultation concluded and feedback reviewed with final policy
changes completed
9 January 2019 Updated to align with revised capex prioritisation process
4 August 2020 Policy updates to reflect current capex policy

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 APPENDIX 1: CAPITAL VS REPAIRS/MAINTENANCE EXPENDITURE GUIDELINES

Capital Expenditure All direct costs incurred in the purchase, construction, delivery, replacement or
major refurbishment of the asset, including all costs necessary to bringing the asset
to a working condition for its intended use.
Includes all costs directly attributable to the capital asset, including purchased and
in-house labour, and costs incurred in designing, preparing, building, commissioning,
testing, and purchasing the capital asset.
Excludes feasibility and other costs incurred prior to formal approval of the capital
project or capital expenditure, and costs incurred on a capital project that is unlikely
to be approved or proceed to completion.
Capital expenditure must be capitalised in the fixed assets register.
The expected useful life of the asset must be greater than one year, otherwise the
costs will be expensed as an operating expense.
Where the expense is less than $2,000, the purchase can be treated as an operating

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expense through the statement of revenue and expense, which is subject to the
Delegation of Authority approval limits and processes applicable for operating
expenditure. If the expense is to be accounted for as a capital expense and

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processed to the fixed assets register, then all policies applicable for capital
expenditure need to be adhered to.
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Where a single capital expenditure project contains several items which individually
fall below the threshold but collectively are more than $2,000, then the items
require capitalisation and are subject to depreciation.
Repairs & Includes the following:
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Maintenance (i) The cost of maintaining an existing asset in a condition similar to its original
Expenditure condition, including the cost of maintaining its efficient functioning.
(ii) The replacement of a part of an existing asset.
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(iii) Direct costs incurred on an asset where the cost is less than $2,000, and
where it has been decided not to capitalise the expenditure, but treat it as an
operating expenditure.
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 APPENDIX 2: ASSET DEFINITION GUIDELINES

Asset Category Definition Examples

Property Includes purchase of existing buildings, Buildings, Glasshouses,
construction of new buildings, refurbishment of Sheds, Barns, Farm
existing buildings beyond their original new state, Developments, Roading,
development of new items of infrastructure. Sewer and Water networks
Includes all parts of the building as follows:

Building Structure – capital expenditure relating to

improvements in building structure.

Building Fit Out – capital expenditure relating to

the process of making interior spaces suitable for
intended uses.

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Building Services – capital expenditure related to
installing systems in buildings to make them

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comfortable, functional, efficient and safe.

Building non-Concrete – capital expenditure on

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large items not classified as plant and equipment
and not permanent structures.

Building Concrete – capital expenditure on

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permanent structures.

Land Capital expenditure relating to purchases of land. Campus site, farms

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Land; developed and undeveloped. Includes both

Crown land and University owned land.
Plant and Equipment Plant and equipment which is not part of a Vehicles, scientific
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property assets. Items which can moved and equipment, office

operated independently of each other. Includes equipment, farm equipment
the following:
Plant non-Motorised – capital expenditure on plant
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and equipment that is not self-propelled or

motorised.

Plant Motorised – capital expenditure on plant

which can be operated by its own motor or self-
propelling system.

Research Equipment – capital expenditure relating

to plant or equipment purchased for the needs of
research.

Teaching Equipment – capital expenditure required

for teaching >$10k must be approved by the
Director of Library Teaching and Learning.

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 Computer Equipment – capital expenditure
relating to the purchase, installation and
commissioning of equipment for computing,
networking etc.

Motor Vehicles – this category applies to LU owned

motor vehicles provided in accordance with the
University’s personnel and remuneration policies
and vehicles used within the University. This
category applies to service vehicles, leased vehicles
and off road campus and farm vehicles.

Furniture – capital expenditure relating to the

purchase of furniture for offices, laboratories, or
farms.
Library Books, serials Books/Serials/Irregular Serials – capital Books, digital serials, ebooks

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and ebooks expenditure on books, serials, irregular serials,
digital agreements, eBooks or other reading
formats, and excludes serial costs that do not

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include perpetual access.

Assets under Capital expenditure where the purchasing, Partial completed buildings,
Construction
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building, construction or project process is not yet refurbishments or
completed and capital asset is not yet ready for its infrastructural
intended use. developments, project
spend, etc.
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Intangible Assets Assets which have value beyond the current year, Software licenses, software
and which have no physical form. Examples development and
include spend on brand names, trademarks or installation costs, goodwill
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patents, eBooks, IT software licenses or systems

development expenditures.
Leased Assets Any capital asset which is subject to a lease Vehicles, office equipment,
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agreement. Includes all property leases entered property

into by the University and its subsidiaries and
which need to be assessed for capitalisation as
required in terms of the prevailing IFRS or New
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Zealand accounting standards

Minor equipment Business Unit Managers may approve items <$2k in Equipment
expenditures value in line with the Delegations of Authority
policy for applicable areas of operating
expenditures. Capitalisation is optional at the
discretion of BU’s.

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