NAC706.401955. Account for fixed assets.

     1. The account for fixed assets must include the original cost of property owned by the company which is devoted to the limousine operations of the company and which has an estimated service life of more than 1 year and a cost of $5,000 or more.

     2. The cost of additions to and improvements of property leased from others, which must also be included in the account for fixed assets, must be recorded in subaccounts separate and distinct from similar costs relating to owned property. Such additions or improvements must be included in the account for leasehold improvements described in NAC 706.401958.

     3. When the consideration given for property is other than cash, the value of the consideration must be determined on a cash basis. In the entry recording such a transaction, the actual consideration must be properly described to make it easily identifiable. The company must be prepared to furnish the Authority with details regarding the method used by the company to determine the cash value.

     4. When property is purchased under a plan involving deferred payments, no charge may be made to the asset accounts for interest, insurance or other expenditures occasioned solely by that form of payment.

     5. Upon a disposition or abandonment of any of these assets, the applicable asset account must be credited in the amount at which the asset was recorded and the amount must be debited as appropriate to the account for gain or loss on disposal of automotive equipment described in subsection 13 of NAC 706.401982, or the account for gain on the sale of assets except automotive equipment described in subsection 4 of NAC 706.401993.

     (Added to NAC by Transportation Serv. Auth. by R040-02, eff. 9-20-2002)