US · guidance
BOP Program Statement 8563.09 § 10
ACCOUNTING - ADDITIONS AND IMPROVEMENTS. Additions to B&I
must be capitalized when costs exceed $5,000 and it either
increases the asset’s value or its service potential.
Example: The addition of an air conditioning system or
rooms on an existing building improves the
building’s service potential; therefore, it must
be capitalized and matched against future
revenues.
Office renovations also qualify as capital improvements, if the
costs exceed $5,000. Expenses for normal maintenance such as
repairs or renovations must be accrued in the period in which the
costs are incurred.
Improvements that meet the capitalization criteria and increase
the service potential or the asset’s quality are to be
capitalized using the existing asset record for the original
asset.
/s/
Kathleen Hawk Sawyer
Director
History
PS 8563.09 dated 2002-07-23
Provenance
- Source
- bop.gov
- Retrieved
- 2026-09-20
- Edition
- bop-ps-2026-09-20
- Content hash
276f9d579cb2276af791ce9fcb567fa83ff99edeccde1e554069f7bc13220001
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