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

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 Impairment of Capital Assets and Insurance Recoveries. 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