How should I record a physical asset that is purchased jointly with a third party a nd at what value?
The handling of an asset that is purchased jointly should be addressed within the agreement. At the time the asset is purchased, departments must ensure that the portion purchased by the department is correctly recorded (at the purchase price) in their books and amortized accordingly. At the end on the agreement, the asset could be sold and revenues simply divided between the participating organizations. In this case the revenues would be deposited/coded as non- tax revenue to the Consolidated Revenue Fund (CRF). If on the other hand, the asset is taken over by the department, the third party’s share of the asset will be accounted for, as a donation, recorded at fair market value, and amortized.
