Capital Assets Policy

Capital Assets Policy

Purpose

This policy establishes the minimum cost (capitalization amount) used to determine the capital assets recorded in GitLab's financial statements.

Capital Assets Defined

A “Capital Asset” is a unit of property that has an economic useful life extending beyond 12 months and was acquired (or in some cases, produced) for a cost of $1,000 (USD) or more. Capital Assets must be capitalized and depreciated for financial reporting purposes.

Capitalization Thresholds

GitLab establishes $1,000 (USD) as the minimum amount required for capitalization. Any item with a cost below this amount or an economic useful life of 12 months or less, is expensed on the date of purchase.

Methodology

All capital assets are recorded at historical cost as of the acquisition date. These assets are depreciated on a straight-line basis, with the number of depreciation periods being determined by asset class.

Invoices and purchase receipts for capital assets are retained for a minimum of five years.