Research, Technology and Innovation

British Columbia Knowledge Development Fund

Appendix 3 - Definition of Capitalizable Asset

All applicants to the B.C. Knowledge Development fund must ensure that the components of each project are fully capitalizable according to generally accepted accounting principles.

Funds must be spent on capital acquisition, construction and renovation and must be capitalized on the accounts of the receiving entity. Provincial policy follows the Canadian Institute of Chartered Accountants with regard to costing capital assets:

  • The cost of a capital asset includes the purchase price and other acquisition costs such as option costs when an option is exercised; brokers' commissions; installation costs, including architectural, design and engineering fees; legal fees; survey costs, site preparation costs; freight charges; transportation insurance costs; duty; testing and preparation charges.
  • The cost of a capital asset includes direct construction or development costs (such as materials and labour), as well as overhead costs directly attributable to the construction or development activity.
  • A capital asset should be recorded at cost.

It should be noted that BCKDF eligible costs are not equivalent to Canada Foundation for Innovation (CFI) eligible costs.

The following table defines which CFI eligible costs will also be acceptable for BCKDF funding:

CFI Eligible Expenditures

BCKDF Eligible Expenditures

Off-the-shelf purchase of equipment or facility

YES

Capital lease of equipment or facility

YES

Personnel costs (for development only)

YES

Components, materials / supplies

YES

Travel and communications

YES

Shipping, customs charges, taxes and related fees

YES

Extended warranty

NO

Embodied software

YES

Construction / renovation costs (research related)

YES

Training of infrastructure personnel

NO
  • NOTE: if the project is a database, the cost of salaries and contracts involved in surveys and data gathering can be capitalized if they are directly related to developing the database asset.

Under no circumstances will BCKDF fund activities that are currently being funded under an existing operating budget.

BCKDF award recipients are responsible for meeting operational costs associated with BCKDF projects.

These guidelines are subject to change without notice. Applicants are responsible for ensuring they have the most up-to-date version. Any changes will be posted on the BCKDF website located at http://www.aved.gov.bc.ca/bckdf/.

For more information, please contact:

Vicki Hocking
BCKDF Coordinator
Research and Innovation Branch
Ministry of Advanced Education and Labour Market Development
PO Box 9877 Stn Prov Govt
Telephone: (250) 387-1069
E-Mail: Vicki.Hocking@gov.bc.ca