1、Designation:E237819Standard Practice forthe Recognition of Impaired or Retired Property Assets1This standard is issued under the fixed designation E2378;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A numb
2、er in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 This practice covers guidance as to the proper treatmentfor accounting and accountability purposes when items are stillretained but need to be
3、recognized as impaired or retired toadministrative control.This practice is intended to be used inconjunction with Practice E2279,which provides variousprinciples to improve the effectiveness and efficiency of theproperty management functions.These include the concepts ofmateriality,best value,reaso
4、nable detail,and reasonable assur-ance and proper reporting.During the life cycle of propertymanagement,appropriate action must be taken at the appropri-ate time to be in conformance with these principles.Theobjective,on behalf of the owner,is to maintain propertyaccounting records that adequately r
5、epresent the appropriatebook value of the property and for accountability purposesapply the appropriate management and oversight for the properprotection and safeguarding of assets.1.2 This practice covers the recognition of the status ofproperty assets that is critical to a fair representation of t
6、heentitys property and financial records.For instances,whenitems for accounting or property management purposes may nolonger serve the purpose that was originally intended,it may bemore appropriate to recognize impairments or retire these itemsfor record keeping purposes.1.3 Generally,entities for i
7、nternal controls purposes record,account,and inventory property that meet certain criteria,asdefined by the organization,based upon acquisition costthresholds,expendability,or useful life policies.Accordingly,entities should establish recurring depreciation cycles so thatthe property eligible for de
8、preciation is fairly and consistentlyrecorded in the entitys records in accordance with generallyaccepted accounting principles.1.4 The percentage or extent of recognized depreciation isdependent on such factors as the nature of owned property,itsuseful life,and the frequency of property used in sup
9、port ofbusiness-type activities of the entity.1.5 This practice covers the accepted practice of properrecord keeping actions when items are fully depreciated foraccounting purposes and should be retired from the accountingas well as property management purposes when the asset nolonger serves the pur
10、pose that was intended but remains on theentitys premises or continues to be under some form ofcontrol.1.6 Entities have a responsibility under their internal con-trols to operate effectively,efficiently,and in a reasonable andresponsible manner to provide stakeholders best value asprovided in publi
11、c law,regulations,and generally acceptedaccounting practices.These responsibilities include respondingto internally and externally imposed accounting and account-ability changes.1.7 This standard acknowledges during the life cycle ofassets,decisions have to be made regarding the fair represen-tation
12、 of assets and they are what they are purported to be foraccounting and operational purposes.Concurrently,asset man-agement operations include adequate internal controls includ-ing items being managed effectively and efficiently,whichincludes considerations of materiality.1.8 This standard is limite
13、d to property asset managementfunctions.This standard does not purport to address taxconcerns,if any,associated with its use.It is the responsibilityof the user of this standard to establish appropriate internal taxguidelines and to determine the applicability of regulatory orstatutory requirements
14、prior to use.1.9 This international standard was developed in accor-dance with internationally recognized principles on standard-ization established in the Decision on Principles for theDevelopment of International Standards,Guides and Recom-mendations issued by the World Trade Organization Technica
15、lBarriers to Trade(TBT)Committee.2.Referenced Documents2.1 ASTM Standards:2E2135 Terminology for Property and Asset Management1This practice is under the jurisdiction of ASTM Committee E53 on AssetManagement and is the direct responsibility of Subcommittee E53.03 on FinancialManagement.Current editi
16、on approved May 1,2019.Published June 2019.Originallyapproved in 2005.Last previous edition approved in 2013 as E237813.DOI:10.1520/E237819.2For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United StatesThis international
