ASTM E 2220 Standard Practice for Establishing the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property

	Purchase Information Use this form to request purchase information on ASTM online subscriptions. ASTM Collections First Name: Last Name: Email address:

Document ASTM E 2220 is offered by IHS as part of an online subscription. This subscription contains many documents on the same topic.

You may also purchase this document alone from the IHS Standards Store.

ASTM E 2220 Document Information:

Title
Standard Practice for Establishing the Full Valuation of the Loss/Overage Population Identified During the Inventory of Moveable, Durable Property

ASTM International

Publication Date:
Jul 10, 2002

Scope:

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.

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.

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.

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.

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.

Keywords:

category

control ratios

destruction

historical risk

inventory

loss

overage

profit

property

risk management

shortage

threshold ratios

valuation

About IHS
IHS (NYSE: IHS) is a leading global provider of critical technical information, decision-support tools and related services in a number of industries including aerospace and defense, automotive, construction, electronics, and energy. IHS serves customers ranging from large governments and multinational corporations to smaller companies and technical professionals in more than 100 countries. IHS been in business for more than 45 years and employ more than 2,300 people around the world.