ASTM E2131-16

Standard Practice for Addressing and Reporting Losses of Tangible Property

SIGNIFICANCE AND USE
5.1 Losses of property are indicators of the effectiveness of operations. Excessive losses can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can have a negative impact on profitability, mission, performance, or reputation.  
5.2 Addressing and reporting losses provides indicators of needed potential action by decision makers.  
5.3 Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, raw material in inventory.  
5.4 This practice does not change any requirements that may be imposed through law, regulations, contract terms, and conditions.
Note 1: When this practice is submitted in response to a contract solicitation and evaluated as part of a contract award process, this practice may be deemed a representation.
SCOPE
1.1 This practice focuses on addressing and reporting losses of tangible property.  
1.2 Loss occurrences are key aspects of risk management. Projecting the possibility or probability of losses, discovering, disclosing, reporting, managing, and minimizing losses to a reasonable extent is a critical economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of losses.  
1.3 Losses are often discovered as a result of an occurrence, a physical inventory, property custodian or entity self-assessment, or external audit. An actual loss occurrence can be at any time during the property life cycle.  
1.4 Assessing and determining financial liability for losses is not addressed in this practice; such assessments are generally subject to individual contracts or other arrangements.  
1.5 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory limitations prior to use.

General Information

• Status: Historical
• Publication Date: 31-Mar-2016
• ICS: 91.120.01 - Protection of and in buildings in general
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.04 - Reutilization and Disposal

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
Designation: E2131 − 16
Standard Practice for
1
Addressing and Reporting Losses of Tangible Property
This standard is issued under the fixed designation E2131; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope E3015 Guide for Management of Customer-Owned Property
Assets in Possession of Supplier, Contractor or Subcon-
1.1 This practice focuses on addressing and reporting losses
tractor
of tangible property.
3
2.2 ISO Standard:
1.2 Loss occurrences are key aspects of risk management.
ISO 31000 Risk Management
Projecting the possibility or probability of losses, discovering,
4
disclosing, reporting, managing, and minimizing losses to a 2.3 Federal Standard:
FAR Federal Acquisition Regulations
reasonable extent is a critical economic factor in the success of
5
the owning or holding entity. This practice also establishes
2.4 Other Document:
acceptable levels of losses.
Risk Management Guide for DOD Acquisition, Sixth Edi-
tion
1.3 Losses are often discovered as a result of an occurrence,
a physical inventory, property custodian or entity self-
3. Terminology
assessment, or external audit.An actual loss occurrence can be
at any time during the property life cycle.
3.1 Definitions—For definitions relating to property and
asset management, refer to Terminology E2135.
1.4 Assessing and determining financial liability for losses
3.2 Definitions of Terms Specific to This Standard:
isnotaddressedinthispractice;suchassessmentsaregenerally
3.2.1 acquisition cost, n—cost to buy goods, services, or
subject to individual contracts or other arrangements.
assets, minus discounts and adding relevant costs based upon
1.5 This standard does not purport to address all of the
accounting standards.
safety concerns, if any, associated with its use. It is the
3.2.2 entity, n—an agency, company, or institution.
responsibility of the user of this standard to establish appro-
priate safety and health practices and determine the applica-
3.2.3 equipment, n—tangible item that is functionally com-
bility of regulatory limitations prior to use.
plete for its intended purpose, durable, nonexpendable, and
needed for the performance of a contract. Equipment is not
2. Referenced Documents
intended for sale, and does not include material, real property,
2
special test equipment, or special tooling. FAR Part 45
2.1 ASTM Standards:
E2132 Practice for Inventory Verification: Electronic and
3.2.4 loss of property, n—unintended, unforeseen or acci-
Physical Inventory of Assets
dental loss, damage, or destruction of property that reduces the
E2135 Terminology for Property and Asset Management
expected economic benefits of the property.
E2279 Practice for Establishing the Guiding Principles of
3.2.4.1 Discussion—Loss of property does not include oc-
Property Asset Management
currences such as purposeful destructive testing, obsolescence,
E2378 Practice for the Recognition of Impaired or Retired
normal wear and tear, or manufacturing defects. Loss of
Personal Property
property includes, but is not limited to:
E2608 Practice for Equipment Control Matrix (ECM)
(1) Items that cannot be found after a reasonable search;
(2) Theft;
(3) Damage resulting in unexpected harm to property
1 requiring repair to restore the item to usable condition; or
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.04 on Reutiliza-
tion and Disposal.
Current edition approved April 1, 2016. Published May 2016. Originally
3
approved in 2001. Last previous edition approved in 2009 as E2131-09. DOI: Available from National Institute of Standards and Technology (NIST), 100
10.1520/E2131-16. Bureau Dr., Stop 1070, Gaithersburg, MD 20899-1070, http://www.nist.gov.
2 4
For referenced ASTM standards, visit the ASTM website, www.astm.org, or Available from http://farsite.hill.af.mil.
5
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM Available from Defense Acquisition University, 9820 Belvoir Road, Fort
Standards volume information, refer to the standard’s Document Summary page on Belvoir, VA 22060-5565,
the ASTM website. http://www.dau.mil/publications/publicationsDocs/RMG%206Ed%20Aug06.pdf.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
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E2131 − 16
(4) Destruction resulting from incidents that render the use and business rhythm. In any event, practices and cost
item useless for its intended purpose or beyond economical should remain reasonable.
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
Designation: E2131 − 09 E2131 − 16
Standard Practice for
Addressing and Reporting Loss, Damage, or Destruction
1
Losses of Tangible Property
This standard is issued under the fixed designation E2131; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope
1.1 This practice focuses on addressing and reporting loss, damage, or destruction (LDD) losses of tangible property.
1.2 LDD eventsLoss occurrences are key aspects of risk management. Projecting the possibility or probability of LDD,losses,
discovering, disclosing, reporting, managing, and minimizing LDD losses to a reasonable extent is a critical and economic factor
in the success of the owning or holding entity. This practice also establishes acceptable levels of LDD.losses.
1.3 LDD events Losses are often discovered as a result of an occurrence, a physical inventory or other inventory, property
custodian or entity self-assessment, or external audit. An actual LDD eventloss occurrence can occurbe at any time during the
property life cycle.
1.4 LDD events resulting from natural disasters or other incidents beyond the control of an entity are not subject to the criteria
in 1.7. Reporting LDD events is required.
1.5 Natural degradation or normal wear and tear are not considered LDD events and are not addressed in this practice (they may,
however, be considered in establishing residual value).
1.6 Loss, damage, and destruction, while three completely different events, are addressed as one for the purposes of this
practice.
1.7 This practice does not address situations where LDD is an expected outcome, for example, destructive testing.
1.4 Assessing pecuniary and determining financial liability for loss, damage, or destruction losses is not addressed in this
practice; such assessments are generally subject to law.individual contracts or other arrangements.
1.5 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility
of the user of this standard to establish appropriate safety and health practices and determine the applicability of regulatory
limitations prior to use.
2. Referenced Documents
2
2.1 ASTM Standards:
E2132 Practice for Inventory Verification: Electronic and Physical Inventory of Assets
E2135 Terminology for Property and Asset Management
E2279 Practice for Establishing the Guiding Principles of Property Asset Management
E2378 Practice for the Recognition of Impaired or Retired Personal Property
E2608 Practice for Equipment Control Matrix (ECM)
E3015 Guide for Management of Customer-Owned Property Assets in Possession of Supplier, Contractor or Subcontractor
3
2.2 ISO Standard:
ISO 31000 Risk Management
4
2.3 Federal Standard:
FAR Federal Acquisition Regulations
1
This practice is under the jurisdiction of ASTM Committee E53 on Asset Management and is the direct responsibility of Subcommittee E53.04 on Reutilization and
Disposal.
Current edition approved Sept. 1, 2009April 1, 2016. Published October 2009May 2016. Originally approved in 2001. Last previous edition approved in 20012009 as
E2131 – 01.E2131-09. DOI: 10.1520/E2131-09.10.1520/E2131-16.
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
3
Available from National Institute of Standards and Technology (NIST), 100 Bureau Dr., Stop 1070, Gaithersburg, MD 20899-1070, http://www.nist.gov.
4
Available from http://farsite.hill.af.mil.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

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E2131 − 16
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2.4 Other Document:
Risk Management Guide for DOD Acquisition, Sixth Edition
3. Terminology
3.1 Definitions—For definitions relating to property and asset management, refer to Terminology E2135.
3.1.1 book value, n—the net amount at which an asset or liability is carried on the books of account. E2135
3.1.2 custodial records, n—memoranda in any form written or electronic that documents the life cycle of property. E2135
3.1.3 fair value, n—is the amount at which the asset (liability) could be bought (incurred) or sold (settled) in a current
...