G-PP&E Cost Accounting Issue

The cost accounting issue sub-group of the AAPC G-PP&E task force recommended ways to address the complexities of allocating programmatic, managerial, and administrative costs to G-PP&E consistent with current standards. This included a decision framework to guide professional judgment in the development of asset valuation methodologies in light of both internal and external user needs for information. This framework considers the following factors:

• The impact of information relevance and professional judgment to attributing programmatic, managerial, and administrative costs to assets as they are being acquired.
• An approach to supporting professional judgment based on an assessment of organizational relevance/usefulness and cost/benefit analysis of competing implementation options (including consideration of benefits to all users of information and costs to all parties).
• Quantitative and qualitative materiality considerations regarding indirect costs associated with asset purchase and construction.

The sub-group developed implementation guidance in accordance with AAPC decisions and feedback that would assist the federal community.

The cost accounting issue sub-group was chaired by Sandy Van Booven, National Reconnaissance Office.