[Verse 1]
Capital assets in non-profit hands
Buildings, equipment across the land
Unlike business ventures seeking gain
These organizations serve a different aim
Record at cost when purchased new
Fair value when donations come through
Depreciation spreads the expense
Over useful life, it makes sense
[Chorus]
Cost or fair, depreciate with care
Impairment tests when values tear
Donated gifts at market price
Capital assets, roll the dice
Tangible treasures on the books
NFP accounting hooks
[Verse 2]
Someone gives a building worth a million
Fair value's what we're really spillin'
Into the ledger, credit revenue
Debit asset for the value true
Componentization breaks apart
Major pieces, each a separate heart
Roof and HVAC get their own
Depreciation rates they've grown
[Chorus]
Cost or fair, depreciate with care
Impairment tests when values tear
Donated gifts at market price
Capital assets, roll the dice
Tangible treasures on the books
NFP accounting hooks
[Bridge]
When impairment signs appear
Carrying value brings us fear
Recoverable amount's the test
Write it down if that's what's best
No reversal once it's done
Impairment loss, the damage won
[Verse 3]
Restricted funds for capital use
Defer revenue, don't let loose
Match the recognition rate
With depreciation, don't be late
Collections need not depreciate
If preserved indefinitely great
Disclosure notes must tell the tale
Capital policy cannot fail
[Chorus]
Cost or fair, depreciate with care
Impairment tests when values tear
Donated gifts at market price
Capital assets, roll the dice
Tangible treasures on the books
NFP accounting hooks
[Outro]
Stewardship drives the NFP way
Capital assets here to stay
Record, depreciate, and disclose
That's how the capital story goes