Designation:E2219–02StandardPracticeforValuationandManagementofMoveable,DurableProperty1ThisstandardisissuedunderthefixeddesignationE2219;thenumberimmediatelyfollowingthedesignationindicatestheyearoforiginaladoptionor,inthecaseofrevision,theyearoflastrevision.Anumberinparenthesesindicatestheyearoflastreapproval.Asuperscriptepsilon(e)indicatesaneditorialchangesincethelastrevisionorreapproval.1.Scope1.1Thispracticecoverstheassignmentofavaluetopropertythatprovidesaneconomicandlogicalbasisforefficientandcost-effectivepropertymanagement.Thisvalueshouldbethebasisforallocatingresourcesanddevelopingandimprovingsystemsandprocessesfortheacquisition,control,accountinganddisposalofsuchproperty.1.2Whileacquisitioncostanddepreciationofpropertyareusefulandappropriateforfinancialaccountingandreportingpurposes,thisinformationdoesnotreflectthevalueofpropertytoanorganizationorthecostsandotherdamagestheorgani-zationwouldincurifthepropertywerelost,damaged,de-stroyed,orinappropriatelyreleasedorhandled.Thisfinancialinformationisthereforeinadequateforpropertymanagementpurposes.1.3Thedegreetowhichpropertyiscontrolledandthecostofthatcontrolmustbereasonableandcommensuratewiththepracticalconsequencesofbothashortage;thatis,thepropertynotbeingavailablewhenneededduetoloss,damageordestruction;oranoverage;thatis,maintaininginventoriesofexcessproperty.1.4Thevaluationofpropertyforthepurposesofmanage-mentandcontrolistobebasedupontherisksandcostsofshortagesandoveragesaswellasthecostofowningproperty.2.ReferencedDocuments2.1ASTMStandards:E2131PracticeforAssessingLoss,Damage,orDestruc-tionorProperty2E2132PracticeforPhysicalInventoryofDurable,Move-ableProperty2E2220PracticeforEstablishingtheFullValuationoftheLoss/OveragePopulationIdentifiedDuringtheInventoryofMovable,DurableProperty23.Terminology3.1DefinitionsofTermsSpecifictoThisStandard:3.1.1acquisitioncost—thepurchasepricepaidforpropertyandanysubsequentimprovementstoit.3.1.2agency—governmentorganization,regardlessoflevel(federal,state,orlocal).3.1...
