Designation:E2497−11StandardPracticeforCalculationofAssetMovementVelocity(AMV)1ThisstandardisissuedunderthefixeddesignationE2497;thenumberimmediatelyfollowingthedesignationindicatestheyearoforiginaladoptionor,inthecaseofrevision,theyearoflastrevision.Anumberinparenthesesindicatestheyearoflastreapproval.Asuperscriptepsilon(´)indicatesaneditorialchangesincethelastrevisionorreapproval.1.Scope1.1Thispracticecalculatesassetmovementvelocity(AMV)basedonthemovementofassets.1.2Thereisnoexisting,recognizedpracticeforcalculatingAMV.1.3Thispracticeisdesignedtobeapplicableandappropri-ateforallasset-holdingentities.1.4Thispracticedoesnotcovermaterialinventory.Inven-toryvelocity(orinventoryturns)isextensivelydescribedanddiscussedinsupplychainliteratureandisbasedonthroughputratherthanmovementtransactions.1.5AMVcanbecalculatedfortheentiretyoftheassetinventoryoftheentityoranydefinedsubset,includingindividualassets.1.6Thisstandarddoesnotpurporttoaddressallofthesafetyconcerns,ifany,associatedwithitsuse.Itistheresponsibilityoftheuserofthisstandardtoestablishappro-priatesafetyandhealthpracticesanddeterminetheapplica-bilityofregulatorylimitationspriortouse.2.Terminology2.1DefinitionsofTermsSpecifictoThisStandard:2.1.1assetmovementvelocity(AMV),n—rateatwhichassetsmovesinto,within,andoutoftheaccountabilitysystemofanentity.2.1.2portableequipment,n—assetnottrackedtoaphysicallocationlevelbecausethenatureoftheassetusagerequiresahighdegreeofflexibilityinitsphysicallocation.2.2Acronyms:2.2.1AMV—assetmovementvelocity.2.2.2PLL—physicallocationlevel.3.SignificanceandUse3.1Thispracticeestablishesastandardcalculationrepre-sentingtheoperationalfluidityofassetsusedbyanentity.3.2Itisintendedthatthispracticefosterandenableaddi-tionalpracticesrelatedtoorbasedonAMVinformation.3.3Thispracticeenableseffectiveandconsistentcommu-nicationandtrendtrackingovertimeregardingAMV.3.4Calculating,recording,tracking,andcomparingthecomputedAMVwillprovidecomparativeinsightintotheoperationalcomplexityoftheentity.De...
