Estimating the Historical Cost of General Property, Plant, and Equipment

摘要

This standard amends Statement of Federal Financial Accounting Standard (SFFAS) 6, Accounting for Property, Plant, and Equipment, which was issued in November 1995. SFFAS 6 provides implementation guidance and permits estimation of the amount to be capitalized but is not specific regarding allowable methods of estimation. This standard also amends SFFAS 23, Eliminating the Category National Defense Property, Plant, and Equipment, which was issued in May 2003. SFFAS 23 provides guidance for estimating historical cost and accumulated depreciation consistent with SFFAS 6, as amended, but offers more detail regarding permissible documentation and methods. This standard clarifies that reasonable estimates of original transaction data historical cost may be used to value general property, plant, and equipment (G-PP&E). The use of reasonable estimates is available to reporting entities that have not previously prepared financial reports but who may be required or elect to do so in the future and do not yet have adequate controls or systems to capture these costs. In addition, these amendments also apply in those cases where entities have decided to use estimates to determine the historical cost values of G-PP&E.