Standard Practice for the Recognition of Impaired or Retired Property Assets

Importancia y uso:

5.1 Asset management activities should be worthwhile; the perceived benefits should exceed the perceived cost of those benefits. As time progresses, property accountability processes may need to be adjusted with proper recognition to maintain the required framework of internal controls and to avoid abuse. Systematic depreciation of property generally serves to provide a fair presentation of an entity’s property and financial records for decision makers. When conditions change, proper recognition should also occur such as impairments or abandonments. The accountability approach of some items may increase, and accountability approach of other items decrease. Keeping fully depreciated items on the asset records and property management records when they no longer are used as originally intended may be misleading to decision makers and may result in excessive operating costs. Retiring items to administrative control, when appropriate, improves the efficiency and lowers administrative cost without sacrificing other worthwhile internal controls.

Subcomité:

E53.03

Referida por:

E2135-22, E2279-20, E2608-20, E2131-16R22, E2675-22

Volúmen:

04.12

Número ICS:

03.100.30 (Management of human resources)

Palabras clave:

abuse; abandonment; accountability; administratively controlled items; depreciation; fair market value; internal controls; property; recognition; thresholds; valuations;