ASTM E2220-02

    Standard Practice for Establishing the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property (Withdrawn 2009)

    Withdrawn Standard: ASTM E2220-02 | Developed by Subcommittee: E53.03

    WITHDRAWN, NO REPLACEMENT


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    Withdrawn Rationale:

    This practice covers the assignment of a value to categories and complete populations of lost or destroyed property assets for the purpose of determining the composite cost of all such losses on a periodic basis. This practice does not address the valuation of individual property assets.

    Formerly under the jurisdiction of Committee E53 on Property Management Systems, this practice was withdrawn in February 2009. This standard was withdrawn without replacement due to its limited use by the industry.

    1. Scope

    1.1 This practice covers the assignment of a value to categories and complete populations of lost or destroyed property assets for the purpose of determining the composite cost of all such losses on a periodic basis. This practice does not address the valuation of individual property assets.

    1.2 The reason for assigning a loss or destruction value is to establish an economic basis for the allocation of resources to manage property efficiently and in a cost effective manner.

    1.3 The direct cost of lost, damaged or destroyed (LDD) property has little to do with the acquisition, book or market value of such assets. While in many organizations, the value of LDD property is reflected at acquisition cost in the General Ledger accounts this approach is only appropriate for the financial reporting of property assets.

    1.4 The calculation of the cost of loss or destruction of property for the purposes of computing a necessary factor to be used in the equation applied under Practice E 2219 is to be based upon the consideration of both the risk of an inventory shortage as well as the benefits of inventory control and overage management.

    1.5 The valuation of property for the purposes of management and control is to be based upon the consideration of both the risk of an inventory shortage and benefits of inventory management as contained in this standard.



    Referencing This Standard

    DOI: 10.1520/E2220-02

    ASTM International is a member of CrossRef.

    Citation Format

    ASTM E2220-02, Standard Practice for Establishing the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property (Withdrawn 2009), ASTM International, West Conshohocken, PA, 2002, www.astm.org

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