FASAB Guidance Helps With Historical Cost Estimates


The Federal Accounting Standards Advisory Board (FASAB) issued implementation guidance in Statement of Federal Financial Accounting Technical Release (TR) 13 , Implementation Guide for Estimating the Historical Cost of General Property, Plant & Equipment, to address the historical cost estimating of general property, plant and equipment (G-PP&E) as it applies to Statement of Federal Financial Accounting Standards (SFFAS) nos. 6, 23 and 35.

 

The guide provides support and direction as to the types of estimating methodologies and the documentation that could be used to support the valuation estimates of G-PP&E. TR 13 provides a foundation for preparers to exercise judgment in formulating those estimates.

 

The examples outlined in the guide illustrate the use of various estimating methodologies to derive the historical cost of G-PP&E in accordance with SFFAS no. 35 , Estimating the Historical Cost of General Property, Plant, and Equipment—Amending Statements of Federal Financial Accounting Standards 6 and 23. SFFAS no. 35 clarifies that federal entities should report their G-PP&E based on historical cost information in accordance with the asset recognition and measurement provisions of SFFAS no. 6 , Accounting for Property, Plant, and Equipment, as amended. However, reasonable estimates of historical cost may be used to value G-PP&E.

 

More from the JofA:

 

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

CPEOs provide peace of mind around payroll services

The creation of these new IRS-certified service providers for small businesses clarifies some issues around traditional professional employer organizations.

QUIZ

Pronoun practice to help polish your prose

Using pronouns correctly in writing and speech can help you make a good impression. Try our 10-question quiz.