01 January 2026
Board of Directors
This policy establishes consistent criteria for capitalizing fixed assets for Neuromatch Inc., a fully remote nonprofit. It ensures accurate financial reporting and compliance with generally accepted accounting principles (GAAP).
This policy applies to all purchases of tangible and intangible assets made by the organization, regardless of funding source.
Neuromatch, Inc. will capitalize any individual asset with a and , excluding items primarily considered consumables or operational supplies.
Given the organization’s fully remote operations, capital assets may include (but are not limited to):
- High-value computer equipment and servers
- Licensed software or cloud-based platforms with upfront capital costs
- Specialized hardware or digital tools critical to operations
- Leasehold improvements (if ever applicable to co-working or leased office arrangements)
Assets will be capitalized if:
- The or exceeds , and
- The is .
Items not meeting these thresholds will be expensed in the period incurred.
Capitalized assets will be depreciated over their estimated useful life using the straight-line method, beginning in the month the asset is placed in service. Useful life guidelines:
- Computer equipment: 3 years
- Software: 3–5 years
- Other tangible assets: 3–5 years, as appropriate
Fully depreciated assets will remain on the books until disposal.
Due to the limited nature of capital assets in a remote organization, a simplified asset register will be maintained by the finance team, including:
- Purchase date
- Description
- Cost
- Depreciation schedule
- Responsible staff member (if applicable)
When an asset is no longer in service or disposed of, it will be removed from the register and any remaining book value will be accounted for in the financial statements.
This policy shall be reviewed annually or when material changes in operations or regulations occur.