| Description: |
This system function calculates and records asset values, depreciation, amortization, depletion of assets, and any adjustment to the valuation as a result of a change in the condition of the asset. It uses rules and requirements to determine how to value the asset. Such examples are, funding type (Research and Development, procurement, Operation and Maintenance), costs (direct and indirect), types of assets (capital and expensed), the useful life of end-items and major components, salvage value, depreciation type, which costs are to be aggregated into the end item cost (e.g., direct labor, government furnished parts), which items are to be valued separately (e.g., support equipment), expensed costs, and whether there is government furnished material or government furnished labor being provided to the contractor. This system function also accumulates all direct and indirect costs used in producing an end item (real property or personal property) or service, whether fabricated by a governmental business operation fund, or by a non-governmental organization under contract and then transfers that value to the appropriate asset account once the asset is placed in service. It establishes and records the fair value measurement of Department assets through valuation methods that include, but not limited to, recorded cost (the amount, net of both trade and cash discounts, paid for the asset, plus transportation costs and other ancillary costs), fair market value, net realizable value, replacement value, and like asset value and changes to value as a result of depreciation, amortization and depletion. Upon completion of the valuation, the asset record is updated. |