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SPA Process User’s Guide – Chapter 2 – General Policies

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Impairment of Capital Assets

Report in SPA impairment amounts determined to be significant. For more information on identification of impairments and testing the asset for significance, see Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries (FPP G.002). The Update Property (PAPUPD), Update Fund Value (PAUVAL) and Disposal of Property (PADLET) screens are used to record impaired asset information in SPA.

  1. Report the asset as impaired on the Update Property (PAPUPD) screen:

    Field Name Required Entry
    IMPAIRMENT INDICATOR Y
    IMPAIRMENT AMOUNT Decimal 11,2
    IMPAIRMENT DATE MM/DD/YYYY
  2. Reduce the value of the asset on the Update Fund Value (PAUVAL) screen by the impairment amount. The AMT OF CHANGE is the impairment amount and will reduce the asset balance. The EFFECTIVE DATE reported in the PAUVAL screen must be the same as the date reported as the IMPAIRMENT DATE in the PAPUPD screen.

    Field Name Required Entry
    A/D D
    AMT OF CHANGE Decimal 11,2
    EFFECTIVE DATE MM/DD/YYYY
  3. If the net impairment loss results in an amount greater than or equal to the net book value of the asset, dispose of the asset on the Disposal of Property (PADLET) screen. The DISPOSAL DATE reported in the PADLET screen must be the same as the date reported as the IMPAIRMENT DATE in the PAPUPD screen.

    Field Name Required Entry
    DISPOSAL METHOD 28 – Damaged by Nature
    30 – Damaged by Other
    DISPOSAL DATE MM/DD/YYYY