[CAFR-Contacts-News] OAM Update - Four Capital Asset Policies

Thu Aug 5 11:05:23 PDT 2010

Just a quick note - if there is a ".gif file" attached to the OAM Update
email I just sent, please ignore it.  I am not sure how it got there!

Thanks,
Kathy

Kathryn Ross

Statewide Accounting & Reporting Manager

Oregon State Controller's Division

155 Cottage Street NE, U-50

Salem, OR 97301

Phone:  (503) 373-7277, ext 253

Fax:  (503) 378-3514

http://oregon.gov/DAS/SCD/SARS

________________________________

From: cafr-contacts-news-bounces at listsmart.osl.state.or.us
[mailto:cafr-contacts-news-bounces at listsmart.osl.state.or.us] On Behalf
Of ROSS Kathryn * SCD SARS
Sent: Thursday, August 05, 2010 10:58 AM
To: cafr-contacts-news at listsmart.osl.state.or.us
Subject: [CAFR-Contacts-News] OAM Update - Four Capital Asset Policies

Hello CAFR Accountants,

The following updated policies have been posted to the Oregon Accounting
Manual (OAM). 

1.       OAM 15.60.10 - Capital Assets (Classification and
Capitalization)              

Based on agency questions at the Capital Asset Training, we made the
following housekeeping revisions:

*         Paragraph 119 - Reminds agencies that upon purchase or
completion of an addition or improvement to an existing asset, the
agency must reevaluate the estimates used in the depreciation
calculations (remaining useful life and salvage value) and adjust them
prospectively, if necessary.

*         Paragraph 125 - Clarifies that donated capital assets refers
to donations received from "external parties."  The accounting for
assets transferred "between" agencies is discussed in paragraph 127.

2.       OAM 15.60.20 - Depreciation and Amortization 

Based on agency responses received during the comment period: 

*         The definition of "modified approach" was revised.  In
addition, paragraph 103 was revised to state that agencies may not use
the modified approach to account for infrastructure assets unless
preapproved by the State Controller's Division.

*         Examples were added to clarify the section on depreciating
Idle Assets.  See paragraph 120.

Based on agency questions at the Capital Asset Training:

*         A section was added on depreciating Building Components.  See
paragraph 117.

3.       OAM 15.60.25 - Capital Asset Impairments

We received no additional comments from agencies, so no changes were
made to the July draft sent out for comment. 

4.       OAM 15.60.40 - Intangible Assets

Based on agency questions at the Capital Asset Training:

*	A section was added on Software Licenses Purchased as a Bundle.
See paragraph 132.

We appreciate the thoughtful comments received from agencies during the
comment period for OAM 15.60.20 and 15.60.25, and the questions posed by
the participants at the Capital Assets Training held in July. We have
updated the capital asset policies for those questions that were not
already covered in the OAM. In addition, we have attached a Q&A document
from the training session.

OAM 15.60.20 and 15.60.25 (depreciation/amortization and impairments)
were posted effective August 1, 2010. OAM 15.60.10 and 15.60.40
(classification/capitalization and intangible assets) were posted as of
September 1, 2010. Agencies may apply the updated policies to FYE 2010
but are not required.

Here is the link to the OAM: 
http://www.oregon.gov/DAS/SCD/SARS/oam_toc.shtml

The final policy to be updated in the capital asset group of policies is
OAM 15.60.30 - Capital Leases.  We hope to have a draft ready before
CAFR season begins!  If not, it will be one of the first policies we
work on in 2011.

At last, but not least, here is the name/author/publisher of the capital
asset resource we mentioned at the training:

Accounting for Capital Assets (A Guide for State and Local Governments)
by Stephen J. Gauthier, published by GFOA

OK, that's it!  

Thank you,

Kathy

Kathryn Ross

Statewide Accounting & Reporting Manager

Oregon State Controller's Division

155 Cottage Street NE, U-50

Salem, OR 97301

Phone:  (503) 373-7277, ext 253

Fax:  (503) 378-3514

http://oregon.gov/DAS/SCD/SARS <http://oregon.gov/DAS/SCD/SARS> 

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