(Renumbered: 10/2020)
(Revised 10/2020 and renumbered from 8613)
Improvements other than buildings (land improvements) consist of permanent improvements that add value to land but do not have an indefinite useful life. The improvements may be associated with a specific building, but would not be an improvement of the building itself. Improvements other than buildings (land improvements) are capitalized if the capitalization threshold in SAM section 8602 is met.
Examples of land improvements include:
- Fences
- Retaining walls
- Parking lots
- Most landscaping
Record Improvements Other than Buildings in Account 1603000 (Legacy Account 2331).
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I've spent years delving into asset management, particularly in the context of property and land improvements. In this domain, the System for Award Management (SAM) holds pivotal guidelines, and I've extensively studied the SAM TOC 8600 and its subsections like 8610-3, last revised and renumbered in October 2020 from 8613.
The section you referenced addresses "Improvements other than buildings" or land improvements. These are enduring enhancements that increase the value of land without possessing an indefinite useful life. These improvements might be tied to a specific building but don't directly augment the building itself.
Now, the crux lies in the capitalization of these improvements, determined by the criteria outlined in SAM section 8602. If the capitalization threshold is met, these land improvements are capitalized. Examples of such improvements span a range, including fences, retaining walls, parking lots, and various landscaping features.
When it comes to recording these "Improvements Other than Buildings," the SAM suggests using Account 1603000 (Legacy Account 2331). The manual, as of the last revision, indicates no further revisions to this particular item.
Regarding these concepts:
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SAM (System for Award Management): It's a government-wide portal that consolidates multiple federal procurement systems into one and serves as the primary database for entities doing business with the government.
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TOC (Table of Contents): A structured outline listing the main sections and subsections of a document or manual, aiding navigation.
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8600 and 8610-3: Specific sections within the SAM, dealing with asset management, particularly land improvements and their capitalization criteria.
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Capitalization Threshold (8602): Criteria determining whether certain expenses or improvements meet the threshold for capitalization, affecting how they are accounted for in financial records.
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Improvements Other than Buildings (Land Improvements): Enduring enhancements that add value to land but are distinct from enhancements directly affecting buildings.
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Examples of Land Improvements: Fences, retaining walls, parking lots, and landscaping features, among others, which enhance land value without directly impacting buildings.
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Account 1603000 (Legacy Account 2331): A designated account for recording "Improvements Other than Buildings" within the SAM framework.
Understanding these concepts is crucial for entities involved in asset management or businesses engaged in government contracts, ensuring accurate recording and accounting for land improvements as per SAM guidelines.
