Presentation on theme: "1 Accounting for the Disposal of General PPE The new USSGL account is effective for 2013."— Presentation transcript:
1 Accounting for the Disposal of General PPE The new USSGL account is effective for 2013
2 1 AND 2 - Permanent removal of General PPE No depreciation is taken 1) Asset use is terminated 2) Mgt decision to Permanently remove asset 1 OR 2 - Temporary removal No changes in accounting requirements Assets recorded at its NRV with offsetting Gain/Loss (USSGL 7190 &7290) At disposal - the difference between NRV and actual Disposal amount is recorded as Gain/Loss (USSGL 7110 & 7210)
3 New USSGL account Account 199500: General Property, Plant, and Equipment Permanently Removed but Not Yet Disposed
4 What about a new USSGL account for spare parts? Presented to the IRC Feb 9, 2012. The IRC wanted to establish a separate USSGL account to capture General Property, Plant, and Equipment Permanently Removed To Be Used as Spare Parts/ Subcomponents. IRC determined at the April 19, 2012 meeting, a new USSGL account for spare parts was not necessary. Agencies can use the existing USSGL accounts to record the spare parts.
5 What USSGL account should be used to record GPPE Permanently Removed But not Yet Disposed in 2012? Proposed USSGL account 199500 is not effective until 2013. Consensus of IRC attendees to recommend that agencies use USSGL account 199000 – Other Assets in FY 2012 to record GPPE Permanently Removed But Not Yet Disposed.