Policy Manual sample

MDT Home Health Care Agency, Inc. CAPITALIZATION, DEPRECIATION AND AMORTIZATION The company expenses nominal items costing under $500 at the time of acquisition. Items whose cost exceed $500 are capitalized as assets. Tangible assets are depreciated under the "straight line' method of depreciation. The useful life of each depreciable asset is determined by use of the most recently updated edition of IRS guidelines" Each transaction relating to improving the company's office environment, whose cost exceeds $500, is capitalized under "Leasehold Improvements", and is amortized over the remaining life of the existing Office Lease Agreement. A new corporation which becomes a Medicare certified Home Health Agency(HHA) shall capitalize all related organization and/or start-up costs. These costs may be attributable to such expenses as Legal Fees. Organization Costs are to be amortized over the company's first five years of operations. Start-up costs are amortized over the first three years of operations. Home Health Agency Overall Plan and Budget F-8