Overview 

This Section deals with accounting for capital assets held by not-for-profit organizations. A capital asset should be recorded on the statement of financial position at cost. For a contributed capital asset, cost is considered to be fair value at the date of contribution. In unusual circumstances when fair value cannot be reasonably determined, the capital asset should be recorded at nominal value.

The cost incurred to enhance the service potential of a capital asset is a betterment. The cost incurred in the maintenance of the service potential of a capital asset is a repair, not a betterment.

The cost, less any residual value, of a capital asset with a limited life should be amortized over its useful life in a rational and systematic manner appropriate to its nature and use by the organization. Amortization should be recognized as an expense in the organization's statement of operations.

History of Section PS 4230

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Amendments under consideration

• PSAB - Government Not-for-Profit Strategy
• Government Not-for-Profit Entities: Capital Assets