***United States Government Standard General LedgerPosition/Policy Statement***

PRIVATE 

**PRESENTATION TO THE**

**UNITED STATES GOVERNMENT STANDARD GENERAL LEDGER BOARD**

**SGL IMPACT**

**FASAB STANDARDS**

**ACCOUNTING FOR PROPERTY, PLANT AND EQUIPMENT (SFFAS #6)**

**AND**

**SUPPLEMENTARY****STEWARDSHIP REPORTING (SFFAS #8)**

BY THE

**IRC PP&E/STEWARDSHIP SUBCOMMITTEE**

Karl Boettcher, Chairperson, Financial Management Service

Phil Daniels, Department of Interior

Dave Mielke, National Aeronautics and Space Administration

Sue Mundstuk, Department of Health and Human Services

Eileen Parlow, Department of Education

Thurman Soloman, Financial Management Service

**NOVEMBER 21, 1996**

**TABLE OF CONTENTS**

**SECTION I**

**Purpose and Impact4**

**SGL Accounts**

New Accounts**5**

Removed Accounts**6**

Reduced Accounts**6**

Modified Accounts**7**

**SECTION II**

**Illustrative Transactions**

Property, Plant and Equipment

General**9**

Stewardship

Federal Mission**11**

Heritage**13**

Stewardship Land**15**

Deferred Maintenance**17**

Cleanup Cost**18**

Stewardship

Stewardship PP&E**20**

Stewardship Investments

Nonfederal Physical Property**21**

Human Capital**23**

Research and Development**24**

Stewardship Responsibilities

Current Services Assessment**25**

**ATTACHMENT**

Accounts and Definitions**26**

**SECTION I**

**PURPOSE AND IMPACT**

The purpose of this presentation is to present the USSGL account impact and the related illustrative transactions for the FASAB standards for Accounting for Property, Plant and Equipment (SFFAS #6), and the Supplementary Stewardship Reporting Standard (SFFAS #8).  These standards are for periods beginning after September 30, 1997.  The illustrative transactions contain SGL accounts which reflect the FASAB standards effective in FY 1998.  Also attached to this presentation are account definitions for the affected SGL accounts.

A minimal number of new SGL asset and liability accounts would be established. Existing expense account 6100 would be used to record Stewardship PP&E and Investment costs and Cleanup costs. The  subcommittee initially discussed an option of establishing a new expense account series (6200) for stewardship expenses. However, a number of unresolved implementation issues related to the draft JFMIP cost accounting document surfaced and are currently being addressed by the CFO council and other groups. It was therefore decided that at this time it would be advisable to declare a moratorium on establishing new expense accounts.    

The collection of nonstandard financial and nonfinancial Stewardship information would be collected outside the SGL. 

Initial discussions included the possible use of SGL 8000 memorandum account series to facilitate Stewardship reporting. However, it was decided not to make this a governmentwide SGL requirement.  Information can be collected by the use of agency data stores and/or the use of SGL 9000 series accounts reserved for agency internal statistical/memorandum use.  

FASAB is currently undertaking a related project to address natural resources (materials beneath the surface, space above the surface, and the outer continental shelf). Preliminary FASAB Board meetings to discuss the issue have taken place.  The treatment of natural resources as a stewardship item is a possibility.  A natural resources project task force has been formed and will be chaired by a representative from the Department of Interior. Any SGL impact (accounts 1840 and 1849)  which may result from this initiative will be addressed in the future.

**USSGL ACCOUNTS**

**PROPERTY, PLANT & EQUIPMENT   SGL      ACCOUNTS**

**CURRENTNEW**

**Balance Sheet**

General PP&E Operations

Land, and Land Rights

(Exclude Stewardship)**1711**

Improvements to Land**1712**

Accumulated depreciation on

  Improvements to Land**1719**

Accrued Clean-up cost

(General & Stewardship)**2995**

**Statement of Net Cost**

Stewardship  PP&E6100 &

Stewardship LandAgency 

Heritage PP&ESpecific        

Mission PP&EIdentifier 

Clean-up costs"

________________________________________________________________

**STEWARDSHIP REPORTING DATA STORES/9000**

**I**

**N**

**T**

**Stewardship PP&E/DUE**

Stewardship land**/ASR**

Heritage assets**/TEN**

Mission PP&E**/AA**

Weapons**/OOL**

Space Exploration**CUF**

Other**SOTS**

**Stewardship InvestmentsTLSUT**

Non-Federal Physical property 6100 &**ELISA**

  (federally financed) Agency**WEDST**

Human capital Specific**ACEOGI**

Research & development Identifier**RTRLS**

 Basic research"**DEOT**

 Applied research"**SDF9I**

 Development"**H0C**

Transfers to State/Local**IA0A**

  Stewardship PP&E**PNU0L**

    Stewardship land**/DS/**

    Heritage assets**/SSM**

    Mission PP&E**/SGEE**

  General operations PP&E**/TLRM**

    Land**/OIO**

    Other PP&E**/RE**

**Stewardship Responsibilities/ESA**

Current Services Assessment**/DC**

**C**

**T**

**REMOVE SGL ACCOUNTS**

 Military Equipment1760 **Remove** account - Now part of

Stewardship - Mission PP&E

 Accumulated Depreciation  

   on Military Equipment1769 **Remove**account

**REDUCE AMOUNTS IN SGL ACCOUNTS**

Other USSGL accounts containing a mixture of Stewardship PP&E (Mission/Heritage/Stewardship Land)and General PP&E should be reduced by the stewardship portion.

Land1710**Reduce**balance for public domain land amounts. Will no longer be reported on the balance sheet.

Other Fixed Assets1890**Reduce** balance for statues, monuments, and artwork amounts.  Heritage assets will no longer be reported on the balance sheet.

Other  **Reduce**balance in any other

SGL account and contra account containing Stewardship PP&E.

1730 Buildings

1739Accumulated Depreciation on Buildings

1740Other Structures and Facilities

1749Accumulated Depreciation on Other Structures and Facilities

1750Equipment

1759Accumulated Depreciation on Equipment

1810Assets Under Capital Lease

1819Accumulated Depreciation on Assets Under Capital Lease

1820Leasehold Improvements

1829Accumulated Amortization on Leasehold Improvements

**MODIFY SGL ACCOUNTS**

 Fixed Assets, Net1700**Modify -**Title - Change Fixed Assets to General PP&E**.**

**Modify** - Remove GAO criteria and add Federal entity. Add "meeting definitions of General PP&E."

 Land, Net1710**Modify** - Change to Summary account and reflect land for agency general operations.

 Buildings1730**Modify**Title - Add Improvements and Renovations **Modify** - Definition - Reflect improvements/renovations to multi-use Heritage assets when those costs are directly tied to the conduct of government operations. Also, remove lease purchase.

 Accumulated Depreciation

  on Buildings1739**Modify**Title - Add Improvements and Renovations

 Equipment1750**Modify -**Definition Remove word processors, typewriters, Personal computers, calculators, furniture, copiers, machinery, automotive equipment

 Information Technology -1830**Modify** - Title - Change

  SoftwareAutomated Data Processing to Information Technology Software. 

**Modify** - Definition - add Off-  the- shelf, contractor and user charges.

 Accumulated Amortization on

  Information Technology - 1839**Modify** - Title - Change Automated Data Processing to Information Technology Software.

**Modify** - Definition - Add -  Internally developed software.

 Other Fixed Assets1890**Modify -**Title - Change Fixed Assets to General PP&E

**Modify -**Definition - Remove statues, monuments, and artwork. Change fixed assets to General PP&E.

**SECTION II**

**Illustrative Transactions**

**Proposed and existing proprietary and budgetary accounts needed to implement the FASAB PP&E (SFFAS #6) and Stewardship Standards (SFFAS #8).**

**PP&E - General**

**IMPROVEMENTS TO HERITAGE ASSETS**

**1. PP&E Reference:**

**Improvements to Heritage assets**

Cost of renovating, improving, or reconstructing operating  components of heritage assets used in government operations shall be included in general PP&E.

**________________________**

**TRANSACTIONS:**

**1a.**To record the portion of **improvements to Heritage property** which****is used **for General Operations**.

**Proprietary**

1730 Buildings/**Improvements/Renovations**XXXX

1010 Fund Balance with TreasuryXXXX

If Appropriated -

3100 Unexpended AppropriationsXXXX

5700 Appropriations UsedXXXX

**Budgetary**

4801 Undelivered OrdersXXXX

4902 Expended Authority - PaidXXXX

**1b.**To record accumulated depreciation to Heritage property used in general operations.

**Proprietary**

6100 Operating/Program Expense

  (Production Cost-Operating)XXXX

1739Accumulated Depreciation on

Buildings/**Improvements/**

**Renovations** used in General

OperationsXXXX

**Budgetary**

**None**

**IMPROVEMENTS TO LAND**

**2. PP&E Reference:**

**Certain improvements to Land** (Including Stewardship Land) Cost of pavement or gravel to roadbeds will be capitalized and depreciated.

**____________________**

**TRANSACTIONS:**

**2a.**To record Non-Permanent Improvements to Land, e.g., cost of pavement or gravel to roadbeds.

**Proprietary**

**1712Non-Permanent Improvements to Land**

**(Including Stewardship Real Property)**XXXX

1010 Fund Balance with TreasuryXXXX

If appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801 Undelivered Orders - UnpaidXXXX

4902 Expended Authority - PaidXXXX

**2b.**To record accumulated depreciation on Non-Permanent Improvements to Land.

**Proprietary**

6100Operating/Program Expenses

(Production Cost-Operating)XXXX

**1719Accumulated Depreciation**

**on Non-Permanent Improvements**

**to LandXXXX**

**Budgetary**

**None**

**PP&E - Stewardship**

**Stewardship Summary *********

**Stewardship PP&E includes Federal Mission PP&E, Heritage PP&E and**

**Stewardship Land**

**PP&E - Federal Mission ********

**PP&E Reference:**

**3.Cost of acquiring, constructing, improving, reconstructing, or renovating Federal Mission PP&E shall be shown as a "Cost of Federal mission PP&E" on the statement of net cost.**Examples: Weapons systems and space exploration Equipment.

**a.Initial Implementation Recognition:****Federal Mission**

Federal mission PP&E previously recognized as assets and contra assets shall be removed. Amounts removed shall be charged to the Net Position of the entity and shown as a prior period adjustment.

**_________________________**

**TRANSACTIONS:**

To remove Federal Mission from the SGL for Balance Sheet reporting. The initial adjusting transaction entry assumes that the balance in account 3210 Capital Investments has been eliminated.

**Proprietary**

**Adjusting Entry**

7400Prior Period AdjustmentXXXX

1769Accumulated Depreciation on 

Military EquipmentXXXX

17X9 Accumulated Depreciation on Buildings

Equipment and Other StructuresXXXX

1760 Military EquipmentXXXX

17XX Buildings, Equipment, and

Other StructuresXXXX

**Closing Entry**

3310Cumulative Results of OperationsXXXX

7400Prior Period AdjustmentXXXX

**Budgetary**

None

**b.Establish expense accounts**

Record the cost of **Federal mission weapons, space and other PP&E.**

**______________________**

**TRANSACTIONS**

To record purchase or cost of constructing, improving, reconstructing, or renovating Federal Mission.

**Proprietary**

6100Operating/Program Expenses

**(Mission Property, Plant & Equipment)XXXX**

1010Fund Balance with TreasuryXXXX

If Appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority - PaidXXXX

**PP&E Heritage ***********

**PP&E Reference:**

**4.**Those assets possessing significant natural, historical significance; educational, cultural, or artistic importance; or architectural characteristics.

Examples: Washington monument, federal office buildings.

**a.Initial Implementation Recognition of**heritage assets previously recognized as assets will be removed from the balance sheet.

Amounts removed shall be charged to net position of entity, shown as a prior period adjustment and disclosed as a footnote.

_____________________

**TRANSACTIONS:**

To remove Heritage Assets from the SGL for Balance Sheet reporting. The initial adjusting transaction entry assumes that the balance in account 3210 Capital Investments has been eliminated.

**Proprietary**

**Adjusting Entry**

7400Prior Period AdjustmentXXXX

17X9Accumulated Depreciation on

Equipment/BuildingXXXX

1890Other Fixed Assets -

(Statutes, Monuments, Artwork)XXXX

17XXBuildings, Equipment, Other

StructuresXXXX

**Closing Entry**

3310Cumulative Results of OperationsXXXX

7400Prior Period AdjustmentXXXX

**Budgetary**

**None**

**b.Cost of improving, reconstructing, or renovating** heritage asset shall be recognized as a cost in the period incurred and disclosed on the face or as a footnote.

_____________________

**TRANSACTIONS:**

To record purchase or cost of constructing, improving, reconstructing, or renovating Heritage Property.

**Proprietary**

6100Operating/Program Expenses

**(Heritage Property)XXXX**

1010Fund Balance with TreasuryXXXX

If Appropriated -

3100 Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority - PaidXXXX

**c.Multi-use:**

Heritage portion should be treated as periodic cost General PP&E portion should be capitalized and depreciated (See general PP&E).

__________________

**TRANSACTIONS:**

**Multi-use:**

Heritage portion should be treated as periodic cost - See transaction **4b.**

General PP&E portion should be capitalized and depreciated - See transaction **1a**.

**PP&E Stewardship Land************

**PP&E REFERENCE:**

**5.**Land other than that included in general PP&E

Examples: National parks and forests.

**a.Initial Implementation Recognition: Stewardship Land**

Stewardship Land previously recognized as an asset will be removed from the balance sheet.

Amounts removed shall be charged to net position of entity, shown as a prior period adjustment and disclosed as a footnote.

**________________________**

**TRANSACTIONS**

To remove Stewardship Land from the SGL for Balance Sheet reporting.  The initial adjusting transaction entry assumes that the balance in account 3210 Capital Investments has been eliminated.

**Proprietary**

**Adjusting Entry**

7400Prior Period AdjustmentXXXX

1710Land (Public Domain Lands)XXXX

**Closing Entry**

3310Cumulative Results of OperationsXXXX

7400Prior Period AdjustmentXXXX

**Budgetary**

None

**b.**Recognized stewardship land acquired as a cost in the period incurred on the statement of net cost.

**_________________________**

**TRANSACTIONS:**

To record purchase of stewardship land

**Proprietary**

6100Operating/Program Expenses

**(Stewardship land)XXXX**

1010Fund Balance with TreasuryXXXX

If Appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority - PaidXXXX

**c.**The cost of pavement and gravel are general PP&E and would be capitalized and depreciated. **(See general PP&E).**

**Deferred Maintenance****Standard**

**PP&E Reference:**

Maintenance (Keeping fixed asset in acceptable condition) not performed (put off or delayed) when it should have been.

Currently not sufficiently measurable to be recognized as a liability on the balance sheet for all four categories of PP&E.

**Reporting:**

A line item shall be presented on the Statement of Net Cost with a note reference in lieu of a dollar amount.

**SGL Impact: NONE**

**Cleanup Cost Standard**

**PP&E REFERENCE:**

Costs (required by Federal, state or local regulations as of balance sheet date) of removing, containing and/or disposing of hazardous waste (Solid, liquid or gas) from property or material at permanent or temporary closure or shutdown of associated PP&E. Cleanup can not occur until the end of the useful life or at regular intervals during the life of the PP&E.

**For General and Stewardship PP&E**

**6a.One Time****Initial Implementation recognition**

**General PP&E and Stewardship**

(1)a.Recognize as liability that portion that has passed or

b.If costs are not to be recovered - Recognize total estimated costs as a liability. Recognize total liability for Stewardship.

(2)Offsetting implementation charge shall be made to net position of the entity on the **balance sheet**.

(3)Prior period adjustment in statement of changes in net position. No amounts shall be recognized as expense in the period of implementation.

(4)Amounts involved disclosed.

__________________________

**TRANSACTIONS:**

To record initial implementation of **past Cleanup costs**

**Proprietary**

**Adjusting Entry**

7400Prior Period AdjustmentXXXX

**2995Accrued Unfunded Cleanup CostsXXXX**

**Closing Entry**

3310Cumulative Results of Operations

7400Prior Period Adjustment

**Budgetary**

None

**PP&E Reference:**

**b.General PP&E**

Recognize a portion of the total cleanup costs as an **expense on****statement of net cost** and as a **liability on the balance sheet** when placed in service and continued each period until PP&E ceases operation.

**Stewardship**

Recognize the total estimated cleanup costs as an **expense on the statement of****net cost** and as a **liability on the balance sheet**.

______________________

**TRANSACTIONS:**

To record current cleanup costs for general and stewardship PP&E. Use existing expense account for general PP&E and establish a new expense account for stewardship PP&E and a new liability account for both general and stewardship cleanup costs.

**Proprietary**

6100Operating/Program Expenses

**(General and stewardship**

**cleanup costs)XXXX**

**2995Accrued Unfunded Cleanup costsXXXX**

**Budgetary**

None

**PP&E Reference:**

**c.**Adjustments for reestimates of current and past operations as an **expense on the statement of net****cost** and as a **liability on the balance****sheet** in the period of the change.

____________________

**TRANSACTIONS:**

To record upward adjustment of cleanup costs.

**Proprietary**

6100Operating/Program expenses            

**(General and stewardship**

**cleanup costs)XXXX**

**2995Accrued Cleanup costsXXXX**

**Budgetary**

None

**Supplementary Stewardship Reporting**

**Stewardship PP&E**

**Stewardship PP&E includes Federal Mission PP&E, Heritage PP&E and Stewardship Land.**

**________________________________________________**

**Stewardship Heritage Standard *****

**See PP&E -**Heritage for transactions

**Stewardship Federal Mission****Standard *****

**See PP&E -**Federal Mission for transactions

**Stewardship Land****Standard *****

**See PP&E**- Stewardship Land for transactions

**________________________________________________**

**STEWARDSHIP INVESTMENTS**

**Stewardship - Non Federal Physical Property****Standard *************

**Definition**

Federal expenditures for the purchase, construction, renovation (Major additions, alterations, and replacements) of physical property owned by state or local governments. In addition, the

difference between the fair market value of federal property transferred to state or local governments and any consideration received.

**Recognition/Measurement**

Expenses related to related to nonfederal physical property programs are reported as expenses in arriving at the net cost of operations.

_______________________________

**TRANSACTIONS:**

**8a.**To record Federal expenses related to Stewardship Nonfederal Physical Property.

**Proprietary**

6100Operating/Program Expenses

**(Nonfederal Physical Property)XXXX**

1010Fund Balance with TreasuryXXXX

If appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority  - PaidXXXX

**TRANSACTIONS:**

**b.**To record the transfer of ownership of General PP&E (land, buildings, equipment and other) to state and local governments.

**Proprietary**

**1719Accumulated Depreciation on**

**Improvements to LandXXXX**

17X9Accumulated Depreciation on Buildings

Equipment and other StructuresXXXX

7210Losses on disposition of AssetsXXXX

**1711Land and Land RightsXXXX**

**1712Improvements to LandXXXX**

17XXBuildings, Equipment, and

Other StructuresXXXX

**Budgetary**

**None**

**Stewardship - Human Capital****Standard *************

**Definition**

Expenses incurred for public education and training programs intended to maintain or increase national productive capacity and that produce outputs and outcomes that provide evidence of maintaining or increasing national productive capacity. (Training for Federal civilian and military personnel not included).

**Reporting - Recognition/Measurement:** Form and Content 

(1)Actual program expenses incurred - Statement of Net Cost

(2)Program output and outcome - Stewardship Report

(1)Data in current dollars on investment for current year and the preceding 4 years - Stewardship Report

___________________________

**TRANSACTIONS:**

**9**.To record Federal expenses related to Stewardship Human Capital.

**Proprietary**

6100Operating/Program Expenses

**(Stewardship Human Capital)XXXX**

1010Fund Balance with TreasuryXXXX

If Appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority - PaidXXXX

**Stewardship - Research and Development Standard **************

**Definition:**

Expenses incurred to support the search for new or refined knowledged and ideas and for the application or use of such knowledge and ideas for the development of new or improved  products and processes with the expectation of maintaining or increasing national economic productive capacity or yielding other future benefits.

**Reporting - Recognition/Measurement**

(1)Actual program expenses incurred

(2)Program output and outcome

(1)Data in current dollars for the current year and the preceding 4 years.

________________________

**TRANSACTIONS:**

**10**.To record expenses related to research and development - basic, applied and development.

**Proprietary**

6100Operating/Program Expenses

**(Research and development)XXXX**

1010Fund Balance with TreasuryXXXX

If Appropriated -

3100Unexpended AppropriationsXXXX

5700Appropriations UsedXXXX

**Budgetary**

4801Undelivered Orders - UnpaidXXXX

4902Expended Authority****-****PaidXXXX

**Stewardship Responsibilities**

**Current Services Assessment Standard **************

**Supplementary Stewardship Reference:**

**Definition**

Provides receipt and outlay data on the basis of projections of future activities of total government operations. This will aid

in assessing the sufficiency of future budgetary resources to 

sustain public services and meet obligations as they become due.

**Measurement:**

(1)CSA data for base year will represent receipt and outlay data submitted for the budget and will be actual receipt and outlay data for the last completed fiscal year.

(2)CSA data for 6 years subsequent to the base year will be identical to projected data published in the President's Budget for the same period.

**Reporting:**

Consolidated financial Statement of the US Government

OMB would provide projected 6 year data.

**SGL Impact:**None

**Accounts and Definitions**

**Proposed additions to and, modifications and removal of existing**

**U.S. Standard General Ledger accounts and definitions needed to**

**implement the FASAB PP&E (SFFAS #6) and Stewardship Standards (SFFAS #8).**

**I. ASSET ACCOUNTS**

**Modify Title**

**Modify Definition**

**1.**Account Title:**General Property, Plant and Equipment, Net**

Account Number:1700

Normal Balance:Debit

Type of Account:Summary

Current Definition: The current book value of real and personal property in accordance with capitalization criteria established by GAO.

**Revised****Definition: The current book value of real and personal property in accordance with capitalization criteria established by the Federal entity.**

**____________________**

**Modify Definition**

**Change Posting to Summary**

**2.**Account Title:Land**, Net**

Account Number:1710

Normal Balance:Debit

Type of Account:**Summary**

Current definition: ****The cost or appraised value of land owned by the government****including public domain lands, standby facilities, and permanent improvements to the land.

**Revised definition: The current book value of land, land rights and improvements made to land that were acquired for agency general operations.**

**New Account**

**3.**Account Title:**Land and Land Rights**

Account Number:**1711**

Normal Balance:**Debit**

Type of Account:**Posting**

**Definition: The identifiable cost of land and land rights of unlimited duration acquired for or in connection with plant, property and equipment used in general operations, including permanent improvements.  Stewardship land (national park or forest and land in the public domain) is excluded.  Also, excluded are materials beneath or above the surface and outer-continental shelf resources.**

**_____________________**

**New Account**

**4.**Account Title:**Improvements to Land**

Account Number:**1712**

Normal Balance:**Debit**

Type of Account:**Posting**

**Definition: The cost of non-permanent, depreciable improvements to land used in general operations.  Also includes similar costs to land subject to stewardship reporting, as well as land rights of limited duration that are associated with general operations.**

**_____________________**

**New Account**

**5.**Account Title:**Accumulated Depreciation on Improvements to Land**

Account Number:**1719**

Normal Balance:**Credit**

Type of Account:**Posting**

**Definition:  Accumulates depreciation charged to expense for improvements Land.**

**Modify Definition**

**Modify Title**

**6.**Account Title:Buildings**/Improvements and Renovations**

Account Number:1730

Normal Balance:Debit

Type of Account:Posting

Current definition: The cost of Government-Owned Buildings under the control of the Agency.  This account includes Buildings acquired under lease-Purchase Agreements.    

**Revised definition:****Cost of government-owned buildings acquired for and used in providing general government services or goods.  Includes the cost of renovation, improvement, restoration or reconstruction of multi-use heritage assets when the costs are directly tied to the conduct of government operations.**

**_____________________**

**Modify Title**

**Modify Definition**

**7.**Account Title: Accumulated Depreciation on Buildings**, Improvements and Renovations**

Account Number:1739

Normal Balance:Credit

Type of Account:Posting

Current definition: Accumulates depreciation charged to expense for buildings.

**Revised definition: Accumulates depreciation charged to expense for buildings, Improvements and Renovations.**

**Modify Definition**

**8.**Account Title:Equipment

Account Number:1750

Normal Balance:Debit

Type of Account:Posting

Current definition: Tangible items of a durable nature used in the operations of an agency including but not limited to items such as word processors, typewriters, personal computers, calculators, furniture, copiers, machinery, automotive equipment, and ADP Equipment (Excluding ADP Software).

**Revised definition: The capitalized cost of tangible equipment items of a durable nature used by the agency in providing goods and services. (Excluding computer software)**

**_____________________**

**Remove Account**

**9.**Account Title:Military Equipment

Account Number:1760

Normal Balance:Debit

Type of Account:Posting

Definition:  All categories of combat-type equipment such ships, aircraft, and other military hardware (tanks, weapon systems, etc.)

**_____________________**

**Remove Account**

**10.**Account Title:Accumulated Depreciation on Military Equipment

Account Number:1769

Normal Balance:Credit

Type of Account:Posting

Definition: Accumulates depreciation charged to expense for military equipment.

**Modify Title**

**Modify Definition**

**11.**Account Title:**Information Technology****Software**

Account Number:1830

Normal Balance:Debit

Type of Account:Posting

Current definition:  The capitalized amount of acquired and/or internally developed automated data processing software.

**Revised definition: The capitalized cost of purchased off-the-shelf and contractor developed information technology software.  Also includes cost elements of internally developed software when the cost of development is to be recovered through charges to users.**

**_____________________**

**Modify Title**

**Modify Definition**

**12.**Account Title:**Accumulated Amortization on Information Technology software**

Account Number:1839

Normal Balance:Credit

Type of Account:Posting

Current definition: Accumulates amortization charged to expense for automated data processing software.  Software acquired for research and development with no alternative future use will be amortized over the period of the project as opposed to the normal life cycle amortization.

**Revised definition: Accumulates amortization charged to expense for information technology software.**

**Modify Title**

**Modify Definition**

**13.**Account Title:**Other General Property, Plant and Equipment**

Account Number:1890

Normal Balance:Debit

Type of Account:Posting

Current definition: The value of fixed assets not otherwise classified above such as statues, monuments, and artwork.

**Revised definition:****The value of General PP&E not otherwise classified above.**

**II. LIABILITY ACCOUNT**

**New Account**

**1.**Account Title:**Accrued Cleanup costs**

Account Number:**2995**

Normal Balance:**Credit**

Type of Account:**Posting**

Definition: **The estimated liability for projected future clean-up costs associated with the removing, containing and/or disposing of hazardous materials associated with the current portion of general and the total portion of stewardship PP&E.**

***Effective on October 1, 1997FASAB Standard Implementation for PP&E/Stewardship    Page 1***

***(SFFAS # 6 & SFFAS #8)***