G-PP&E Acquisition

The acquisition sub-group of the AAPC G-PP&E task force developed implementation guidance for financial reporting requirements associated with the acquisition of GPP&E. The subgroup reviewed and analyzed applicable established acquisition and accounting guidance. The review and analysis included an understanding of the end-to-end processes relating to acquiring GPP&E. The resulting implementation guidance allows for full implementation of SFFAS 6 and 23, without being overly prescriptive or burdensome. The guidance is practical, feasible, cost beneficial, and auditable.

The subgroup reviewed the following areas: historical cost, capital leases, cost accounting, capitalization thresholds, replacements, removal (cleanup costs), reporting entity for real property assets, donated assets, spare parts (engines), improvements, auditable documentation to support acquisition, and reporting assets fully depreciated at implementation of SFFAS 23.

Alice Carey, Department of Defense, Office of the Inspector General, and Anitra Akanbi, Department of Defense, Army, co-chaired the acquisition sub-group.