1、Designation: E 2135 071Standard Terminology forProperty and Asset Management1This standard is issued under the fixed designation E 2135; the number immediately following the designation indicates the year oforiginal adoption or, in the case of revision, the year of last revision. A number in parenth
2、eses indicates the year of last reapproval. Asuperscript epsilon () indicates an editorial change since the last revision or reapproval.1NOTESection 2 was added and terms were placed in Section 3 editorially in August 2009.1. Scope1.1 This terminology covers traditional property manage-ment definiti
3、ons and some of the terms introduced in additionalasset management standards that are used most often andconsidered most important. As new standards are developed,new terms will be added to this terminology in future revisions.2. Referenced Documents2.1 ASTM Standards:2E 2221 Practice for Administra
4、tive Control of PropertyE 2306 Practice for Utilization and Disposal of PersonalPropertyE 2452 Practice for Equipment Management Process Matu-rity (EMPM) ModelE 2453 Practice for Determining the Life-Cycle Cost ofOwnership of Personal PropertyE 2495 Practice for Prioritizing Asset Resources in Acqui
5、-sition, Utilization, and DispositionE 2606 Practice for Receipt Notification as a Result ofTangible Property MovementE 2607 Practice for Cannibalization/Reclamation of Ser-viceable Equipment Components to Support Demand Re-quirementsE 2608 Practice for Equipment Control Matrix (ECM)E 2674 Practice
6、for Assessment of Impact of Mobile DataStorage Device (MDSD) LossE 2675 Practice for Property Management System Out-comes3. Terminology3.1 Terms and Definitions:abandoned propertyproperty of any type over which therightful owner has relinquished possession and any claim ofan ownership interest, with
7、out assertion of an adverse rightto possession and control by the federal government. Thiswould include property left at a government facility andunclaimed by the rightful owner following notice of intent todispose. This property is a type of seized property.abandonmentvoluntary surrender of propert
8、y, owned orleased, without naming a successor as owner or tenant. Theproperty will generally revert to a person holding a priorinterest or, in cases where no owner is apparent, to the state.abandonment and destructionoccurs when the surpluspersonal property has reached the end of its useful life and
9、no other disposal options are available. E 2306abatementa reduction or cancellation of an assessed tax.ABC methodinventory management method that catego-rizes items in terms of importance. Thus, more emphasis isplaced on higher dollar value items (“A”s) than on lesserdollar value items (“B”s), while
10、 the least important items(“C”s) receive the least time and attention. Inventory shouldbe analyzed frequently when using the ABC method. Theprocedure for ABC analysis follows: (1) Separate finishedgoods into types (chairs of different models, and so on);separate raw materials into types (screws, nut
11、s, and so on).(2) Calculate the annual dollar usage for each type ofinventory (multiply the unit cost by the expected futureannual usage). (3) Rank each inventory type from highest tolowest, based on annual dollar usage. (4) Classify theinventory as Athe top 20 %; Bthe next 30 %; andCthe last 50 % o
12、f dollars usage, respectively. (5) Tag theinventory with its appropriate ABC classification and recordthose classifications in the item inventory master records.abnormal spoilagefor government accounting under theFAR, abnormal spoilage may or may not be allowable cost.If the cost is deemed allowable
13、, the cost would normally becharged consistently with normal spoilage.accelerated cost recovery system (ACRS)system of depre-ciation for tax purposes mandated by the Economic Recov-ery Act (ERA) of 1981 and modified by the Tax Reform Actof 1986. The type of property determines its class. Instead of1
14、This terminology is under the jurisdiction of Committee E53 on PropertyManagement Systems and is the direct responsibility of Subcommittee E53.06 onTerminology.Current edition approved June 15, 2007. Published July 2007. Originallyapproved in 2001. Last previous edition approved in 2006 as E 2135 06
15、a.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.1Copyright ASTM International, 100 Barr Harbor Drive, PO Bo
16、x C700, West Conshohocken, PA 19428-2959, United States.providing statutory tables, prescribed methods of deprecia-tion are assigned to each class of property. For 3, 5, 7, and10-year classed, the relevant depreciation method is the200 % declining balance method. For 15 and 20-year prop-erty, the ap
17、propriate method is the 150 % declining balancemethod switching to the straight-line method when it willyield a larger allowance. For residential rental property (27.5years) and nonresidential real property (31.5 years), theapplicable method is the straight-line method. A taxpayermay make an irrevoc
18、able election to treat all property in oneof the classes under the straight-line method. Property isstatutorily placed in one of the classes. The purpose ofACRS is to encourage more capital investment by busi-nesses. It permits a faster recovery of the assets cost andthus provides larger tax benefit
19、s in the earlier years. See alsomodified accelerated cost recovery systems (MACRS).accelerated depreciationany method of calculating depre-ciation charges where the charges become progressivelysmaller each period. Examples are double-declining-balanceand sum-of-the-years-digits methods.accelerated d
20、epreciationmethod recognizing higheramounts of depreciation in the earlier years and loweramounts in the later years of a fixed assets life. Somemachines, for example, are more efficient early on andgenerate greater service potential; matching dictates higherdepreciation expense in those years. Over
21、 time, depreciationexpense moves in downward direction and maintenancecosts tend to become higher; thus the effect of accelerateddepreciation is fairly even charges to income. Greatest taxbenefits from depreciation are enjoyed in the earlier years.(Examples include double declining balance and sum-o
22、f-the-years-digits method.)accessory iteman item that facilitates or enhances theoperation of equipment but is not essential for its basicoperation.accountabilityindividual or departmental responsibility toperform a certain function. Accountability may be dictatedor implied by law, regulation, or ag
23、reement. For example, anauditor will be held accountable to financial statement usersrelying on the audited financial statements for failure touncover corporate fraud because of negligence in applyinggenerally accepted auditing standards (GAAS).accounting changechange in: (1) accounting principles(s
24、uch as a new depreciation method); (2) accounting esti-mates (such as a revised projection of doubtful accountsreceivable); or (3) the reporting entity (such as a merger ofcompanies). When an accounting change is made, appropri-ate footnote disclosure is required to explain its justificationand fina
25、ncial effect, thereby enabling readers to makeappropriate investment and credit judgments. Proper justifi-cation for a change in accounting principles may be theissuance of a new FASB pronouncement, SEC AccountingSeries Release (ASR), or IRS regulation. Changes in esti-mates are justified by changin
26、g circumstances such as agreater degree of wear and tear of a fixed asset thanoriginally anticipated. Generally, the consistent use of ac-counting principles and procedures is essential in appraisingand entitys activities and in the projection of future results;however, changes in the reporting enti
27、ty have to be retroac-tively reflected for comparative purposes.accretionincrease in economic worth through physicalchange, usually said of a natural resource such as an orchard,caused by natural growth. Contrast with appreciation.accumulated depreciationsum of depreciation chargestaken to date on a
28、 fixed asset.Accumulated depreciation is acontra account to the fixed asset to arrive at book value. Forexample, on 1/1/2000 an auto is bought costing $10 000,with a salvage value of $1000 and a life of 10 years. Usingstraight-line depreciation, the accumulated depreciation on12/31/2003 would be $36
29、00 ($900 3 4).acquisition(1) the act of acquiring. (2) Acquiring hardware,supplies or services through purchase, lease, or other means,including transfer or fabrication, whether the supplies orservices are already in existence or must be created, devel-oped, demonstrated, and evaluated.acquisitionth
30、e acquiring by contract with appropriatedfunds of supplies or services (including construction) by andfor the use of the federal government through purchase orlease, whether the supplies or services are already inexistence or must be created, developed, demonstrated, andevaluated. Acquisition begins
31、 at the point when agencyneeds are established and includes the description of require-ments to satisfy agency needs, solicitation and selection ofsources, award of contracts, contract financing, contractperformance, contract administration, and those technicaland management functions directly relat
32、ed to the process offulfilling agency needs by contract.activity-based depreciationproduction method of deprecia-tion.actual cash valuethe cost of replacing damaged propertywith other property of like kind and quality in the physicalcondition of the property immediately before the damage.actual cost
33、an amount determined on the basis of costincurred including standard cost properly adjusted for appli-cable variance.adjusted basisthe basis used to compute gain or loss ondisposition of an asset for tax purposes. Also, see bookvalue.administratively controlled propertythe property assetsthat are co
34、ntrolled at the discretion of asset managersmanaging the inventories of individual operational units.E 2221ad valorem taxlevy imposed on the value of property. Themost common ad valorem tax is that imposed by states,counties, and cities on real estate. Ad valorem taxes can,however, be imposed on per
35、sonal property.agency-peculiar propertyas used in DoD, means militaryproperty and includes end items and integral components ofmilitary weapons systems, along with the related peculiarsupport equipment which is not readily available as acommercial item.allocateto assign an item of cost, or a group o
36、f items of cost,to one or more cost objectives.This term includes both directassignment of cost and the reassignment of a share from anindirect cost pool.amortizationgradual reduction of an amount over time.E21350712Examples are amortized expenses on intangible assets anddeferred charges. Assets wit
37、h limited life have to be writtendown over the period benefited. For example, all intangibleassets must be amortized using the straight-line method notexceeding 40 years; the amortization entry in that case is todebit amortization expense and credit the intangible asset.amortizationthe gradual extin
38、guishment of any amountover a period of time through a systematic allocation of theamount over a number of consecutive accounting periodssuch as the retirement of a debt by serial payments to asinking fund.amortizationnormally applies to intangibles whereas depre-ciation applies to tangible assets.a
39、mortizeto write off a regular portion of an assets cost overa fixed period of time. Examples are amortization expenseon an intangible asset and depletion expense on a naturalresource. See also sales return.analytical hierarchy process (AHP), ndecision-makingmodel that reduces complex decisions to on
40、e on one com-parisons resulting in the ranking of a list of objectives oralternatives. E 2495appraisal(1) estimate of the value of an asset. An asset maybe a piece of property, a collectible, or a precious metal. Inthe case of property, for example, an appraisal is made forthe purposes of: (a) alloc
41、ating the purchase price to theassets acquired (for example, land, building, equipment); (b)determining the amount of hazard insurance to carry; (c)determining the value of death for estate tax purposes; and(d) determining a reasonable asking price in a sale. (2)Activities such as inspection and tes
42、ting of materials, in-process items, finished goods, and packaging.appraisalthe process of obtaining a valuation for an asset orliability that involves expert opinion rather than explicitmarket transaction.appraisal method of depreciationthe periodic depreciationcharge is the difference between the
43、beginning and end-of-period appraised value of the asset if that difference ispositive. If negative, there is no charge. Not generallyaccepted.appreciationincrease in the value of an asset. The asset maybe real estate or a security. For example, an individual sold100 shares of XYZ companys stock for
44、 $105 per share thathe bought 10 years ago for $25 per share. The amount ofappreciation was $8000 = ($105 $25) 3 100 shares.assemblya number of parts or subassemblies joined to-gether.assessed valuationa dollar amount for real estate or otherproperty used by a government as a basis for levying taxes
45、.The amount may or may not bear some relation to marketvalue.assessed valuevalue established by a government for realestate or other property as a basis for levying taxes. Forexample, an individual receives a statement that, in thejudgment of the local tax assessor, the individuals propertyis worth
46、$50 000. If by law, properties in this jurisdiction areassessed at 80 % of market value, the individuals assessedvalue then is $40 000 (80 % of $50 000) and property taxeswill be based on this assessed value.asset(1) anything owned having monetary value; (2) tan-gible or intangible items owned by an
47、 entity that haveprobable economic benefits that can be obtained or con-trolled by the entity.asseteconomic resource that is expected to provide benefitsto a business. An asset has three vital characteristics: (1)future probable economic benefit; (2) control by the entity;and (3) results from a prio
48、r event or transaction. Assets areexpressed in money or are convertible into money. They canbe recognized and measured in conformity with generallyaccepted accounting principles (GAAP). Examples of own-ership rights or service potentials are cash, automobiles, andland.An asset may be tangible or int
49、angible. The former hasphysical substance such as a building. The latter lacksphysical substance or results from a right granted by thegovernment or another company such as goodwill and apatent. An asset may be current or noncurrent. A currentasset has a life of one year or less (for example, inventory)while a noncurrent asset has a life in excess of one year (forexample, machinery).asset accountability unita tangible capital asset which is acomponent of plant and equipment that is capitalized whenacquired or whose replacement
