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ASTM International - 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the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property (Withdrawn 2009)

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Organization: ASTM International
Publication Date: 10 July 2002
Status: inactive
Page Count: 3
ICS Code (Company organization and management in general): 03.100.01
significance And Use:

The calculated cost of property loss and destruction in combination with the cost of overages presents a logical foundation for the development of alternative models which can be used to evaluate... View More

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.

Document History

ASTM E2220-02
July 10, 2002
Standard Practice for Establishing the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property (Withdrawn 2009)
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...
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