FASAB proposes standards for property, plant and equipment.The Federal Accounting Standards Advisory Board The Federal Accounting Standards Advisory Board (FASAB) is a United States federal advisory committee whose mission is to develop generally accepted accounting principles for federal financial reporting entities. has issued an exposure draft of a proposed statement of recommended accounting standards, Accounting for Property, Plant, and Equipment. The standards would have significant effects on the balance sheet, operating statement operating statement See income statement. and other aspects of general purpose financial reports of federal reporting entities and would make them more useful to those who use, prepare and audit them, FASAB FASAB Federal Accounting Standards Advisory Board FASAB Financial Accounting Standards Advisory Board said. The Government Management Reform Act of 1994 calls for such reports from all cabinet agencies. The ED calls for * Recognition of property, plant and equipment (PP&E) used in providing general government goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. as an asset on the balance sheet. * Recognition of the expense associated with using up PP&E to provide those services. * Recognition on the operating statement of any expenditures to acquire certain types of PP&E. * Reporting on deferred maintenance of PP&E. * Recognition of the operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. and liability associated with cleanup of hazardous materials and waste. Although the comment period has passed, free copies of this ED still may be available. Write to the Federal Accounting Standards Advisory Board, 750 First Street, N.E., Room 1001, Washington, D.C. 20002, or call (202) 512-7350. |
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