ASTM E2131-09

Standard Practice For Addressing and Reporting Loss, Damage, or Destruction of Tangible Property

SIGNIFICANCE AND USE
LDD is an indicator of the effectiveness of operations. Excessive LDD can indicate poor internal management and controls, policy or procedural weaknesses, or lack of compliance, any one of which can impact entity profitability, mission performance, or reputation.
Addressing and reporting LDD provides a guideline for action for decision makers.
Though the term equipment is used consistently throughout this practice, this process may be used for the other classes of property, for example, material.
SCOPE
1.1 This practice focuses on addressing and reporting loss, damage, or destruction (LDD) of tangible property.
1.2 LDD events are key aspects of risk management. Projecting the possibility or probability of LDD, discovering, disclosing, reporting, managing, and minimizing LDD is a critical and economic factor in the success of the owning or holding entity. This practice also establishes acceptable levels of LDD.
1.3 LDD events are often discovered as a result of a physical inventory or other audit. An actual LDD event can occur 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.
1.8 Assessing pecuniary liability for loss, damage, or destruction is not addressed in this practice; such assessments are subject to law.
1.9 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-Aug-2009
• ICS: 91.120.01 - Protection of and in buildings in general
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.04 - Reutilization and Disposal

Relations

• Replaces: ASTM E2131-01 - Standard Practice for Assessing Loss, Damage, or Destruction of Property
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2279-20 - Standard Practice for Establishing the Guiding Principles of Property Asset Management
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2676-09(2020) - Standard Practice for Tangible Property Mobility Index (MI)
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2132-17 - Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2811-17 - Standard Practice for Management of Low Risk Property (LRP)
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2452-12(2019) - Standard Practice for Equipment Management Process Maturity (EMPM) Model
• Effective Date: 01-Sep-2009
• Referred By: ASTM E2675-22 - Standard Practice for Asset Management System Outcomes
• Effective Date: 01-Sep-2009

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 − 09
StandardPractice for
Addressing and Reporting Loss, Damage, or Destruction of
1
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 2. Referenced Documents
2
2.1 ASTM Standards:
1.1 This practice focuses on addressing and reporting loss,
E2132 Practice for Inventory Verification: Electronic and
damage, or destruction (LDD) of tangible property.
Physical Inventory of Assets
1.2 LDD events are key aspects of risk management.
E2135 Terminology for Property and Asset Management
Projecting the possibility or probability of LDD, discovering,
E2279 Practice for Establishing the Guiding Principles of
disclosing, reporting, managing, and minimizing LDD is a
Property Management
critical and economic factor in the success of the owning or
E2378 Practice for the Recognition of Impaired or Retired
holding entity. This practice also establishes acceptable levels
Personal Property
of LDD.
E2608 Practice for Equipment Control Matrix (ECM)
1.3 LDD events are often discovered as a result of a
physical inventory or other audit. An actual LDD event can 3. Terminology
occur at any time during the property life cycle.
3.1 Definitions—For definitions relating to property and
1.4 LDD events resulting from natural disasters or other asset management, refer to Terminology E2135.
incidents beyond the control of an entity are not subject to the 3.1.1 book value, n—the net amount at which an asset or
criteria in 1.7. Reporting LDD events is required. liability is carried on the books of account. E2135
3.1.2 custodial records, n—memoranda in any form written
1.5 Natural degradation or normal wear and tear are not
or electronic that documents the life cycle of property. E2135
considered LDD events and are not addressed in this practice
(they may, however, be considered in establishing residual
3.1.3 fair value, n—is the amount at which the asset
value).
(liability) could be bought (incurred) or sold (settled) in a
current transaction between willing parties, that is, other than
1.6 Loss, damage, and destruction, while three completely
in a forced or liquidation sale. E2135
different events, are addressed as one for the purposes of this
practice. 3.1.4 tangible property, n—property having physical exis-
tence and hence capable of being valued monetarily. Property
1.7 This practice does not address situations where LDD is
other than intangible property. E2135
an expected outcome, for example, destructive testing.
3.2 Definitions of Terms Specific to This Standard:
1.8 Assessing pecuniary liability for loss, damage, or de-
3.2.1 acquisition cost, n—the cost to buy goods, services, or
struction is not addressed in this practice; such assessments are
assets, minus discounts and adding associated costs (except for
subject to law.
taxes).
1.9 This standard does not purport to address all of the
3.2.2 entity, n—an agency, company, or institution.
safety concerns, if any, associated with its use. It is the
3.2.3 normal wear and tear, n—wear on a property item that
responsibility of the user of this standard to establish appro-
takes place with normal or reasonable use for which the item is
priate safety and health practices and determine the applica-
intended or provided.
bility of regulatory limitations prior to use.
3.2.4 risk, n—concept that denotes a potential negative
impact.
1
This practice is under the jurisdiction of ASTM Committee E53 on Asset
Management and is the direct responsibility of Subcommittee E53.04 on Reutiliza-
2
tion and Disposal. For referenced ASTM standards, visit the ASTM website, www.astm.org, or
Current edition approved Sept. 1, 2009. Published October 2009. Originally contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
approved in 2001. Last previous edition approved in 2001 as E2131 – 01. DOI: Standards volume information, refer to the standard’s Document Summary page on
10.1520/E2131-09. the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
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E2131 − 09
3.2.5 risk assessment, n—determination of quantitative or 6.2.5 Equipment Control Class 5—Consequence of loss of
qualitative value of risk related to a concrete situation and a control is not discernible, which is characterized by having no
recognized threat. visible or recognizable impact on the organization.
3.2.6 risk management, n—structuredapproachtomanaging 6.3 Entity policies and procedures wil
...

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:E2131–01 Designation: E 2131 – 09
Standard Practice for
Assessing Loss, Damage, or Destruction of
PropertyAddressing and Reporting Loss, Damage, or
1
Destruction of Tangible Property
This standard is issued under the fixed designation E 2131; 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
1.1Thispracticecoverstheassessmentofloss,damage,anddestruction(LDD)ofproperty,assets,ormaterial.LDDoccurswhen
such property is found to be missing, damaged, or destroyed. Such discoveries often are made as a result of a physical inventory,
an analysis of material used, or routine audits.
1.2Some occurrences of damage and destruction are the result of natural disasters or other incidents beyond the control of the
company, agency, or institution, and are not subject to the standards in paragraph 7. However, the reporting of such instances in
accordance with paragraph 8 is still required.
1.3Some occurrences of LDD are a result of natural degradation or other incidents of fair wear and tear and are not addressed
as a part of this practice.
1.4Loss, damage and destruction, while three completely different occurrences, are addressed as one in this standard. For the
purpose of this standard, reporting and evaluating loss, damage and destruction are the same.
1.5Loss, damage and destruction are key aspects of risk management. Projecting the possibility or probability of LDD, reporting
and managing, and minimizing LDD is a critical and economic factor in the success of any endeavor.
1.1 This practice focuses on addressing and reporting loss, damage, or destruction (LDD) of tangible property.
1.2 LDD events are key aspects of risk management. Projecting the possibility or probability of LDD, discovering, disclosing,
reporting, managing, and minimizing LDD is a critical and economic factor in the success of the owning or holding entity. This
practice also establishes acceptable levels of LDD.
1.3 LDD events are often discovered as a result of a physical inventory or other audit. An actual LDD event can occur 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 NaturaldegradationornormalwearandteararenotconsideredLDDeventsandarenotaddressedinthispractice(theymay,
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.
1.8 Assessing pecuniary liability for loss, damage, or destruction is not addressed in this practice; such assessments are subject
to law.
1.9 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
2.1 Risk Matrix:
DLAD 5000.4, Chapter 7.1, Contract Property Management, May 2000
2.2 Risk Management:
The NPMA Standard Property Book, First Edition, July 1999
2.3 Material Management and Accounting System (MMAS):
1
This practice is under the jurisdiction of ASTM Committee E53 on Property Management Systems and is the direct responsibility of Subcommittee E53.04 on
Reutilization and Disposal.
Current edition approved Jan. 10, 2001. Published February 2001.
Current edition approved Sept. 1, 2009. Published October 2009. Originally approved in 2001. Last previous edition approved in 2001 as E 2131 – 01.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E2131–09
242.72 and 252.242-7004 Department of Defense Federal Acquisition Regulation Supplement, January 1, 2000 ASTM
2
Standards:
E 2132 Practice for Physical Inventory of Durable, Moveable Property
E 2135 Terminology for Property and Asset Management
E 2279 Practice for Establishing the Guiding Principles of Property Management
E 2378 Practice for the Recognition of Impaired or Retired Personal
...