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.
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