ASTM E2135-10a

Standard Terminology for Property and Asset Management

SCOPE
1.1 This terminology covers traditional property management definitions and some of the terms introduced in additional asset management standards that are used most often and considered most important. As new standards are developed, new terms will be added to this terminology in future revisions.

General Information

• Status: Historical
• Publication Date: 14-Oct-2010
• ICS: 01.040.97 - Domestic and commercial equipment. Entertainment. Sports (Vocabularies)
• Technical Committee: E53 - Asset Management
• Drafting Committee: E53.06 - Terminology

Relations

• Replaces: ASTM E2135-10 - Standard Terminology for Property and Asset Management
• Effective Date: 15-Oct-2010
• Replaced By: ASTM E2135-10ae1 - Standard Terminology for Property and Asset Management
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2812-17 - Standard Practice for Uniform Data Management in Asset Management Records Systems
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2306-18 - Standard Guide for Disposal of Personal Property Assets
• Effective Date: 15-Oct-2010
• Referred By: ASTM E3035-15(2020) - Standard Classification for Facility Asset Component Tracking System (FACTS)
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2378-19 - Standard Practice for the Recognition of Impaired or Retired Property Assets
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2671-10(2016) - Standard Practice for Defining Movements, Shipments, and Transfers of Tangible Property
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2495-18 - Standard Practice for Prioritizing Asset Resources in Acquisition, Utilization, and Disposition
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2608-20 - Standard Practice for Equipment Control Matrix (ECM)
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2631-20 - Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification Label
• Effective Date: 15-Oct-2010
• Referred By: ASTM E3257-21 - Standard Practice for Asset Taxonomy
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2936-20 - Standard Guide for Contractor Self-Assessment for U.S. Government Asset Management Systems
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2452-12(2019) - Standard Practice for Equipment Management Process Maturity (EMPM) Model
• Effective Date: 15-Oct-2010
• Referred By: ASTM E2131-16(2022) - Standard Practice for Addressing and Reporting Losses of Tangible Property
• Effective Date: 15-Oct-2010
• Referred By: ASTM E3015-15(2020) - Standard Guide for Management of Customer-Owned Property Assets in Possession of Supplier, Contractor or Subcontractor
• Effective Date: 15-Oct-2010

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: E2135 − 10a
StandardTerminology for
1
Property and Asset Management
This standard is issued under the fixed designation E2135; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision.Anumber in parentheses indicates the year of last reapproval.A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope abandon, v—to give up all and any future claim to rights or
interest in property.
1.1 This terminology covers traditional property manage-
mentdefinitionsandsomeofthetermsintroducedinadditional
abatement, n—a reduction or cancellation of an assessed tax.
asset management standards that are used most often and
ABC method, n—inventory management method that catego-
considered most important. As new standards are developed,
rizes items in terms of importance. Thus, more emphasis is
newtermswillbeaddedtothisterminologyinfuturerevisions.
placed on higher dollar value items (“A”s) than on lesser
2. Referenced Documents
dollar value items (“B”s), while the least important items
2
(“C”s) receive the least time and attention. Inventory should
2.1 ASTM Standards:
be analyzed frequently when using the ABC method. The
E2221Practice for Administrative Control of Property
3
procedure for ABC analysis follows: (1) Separate finished
(Withdrawn 2011)
goods into types (chairs of different models, and so on);
E2306Practice for Disposal of Personal Property
separate raw materials into types (screws, nuts, and so on).
E2452Practice for Equipment Management Process Matu-
(2) Calculate the annual dollar usage for each type of
rity (EMPM) Model
inventory (multiply the unit cost by the expected future
E2453Practice for Determining the Life-Cycle Cost of
annual usage). (3) Rank each inventory type from highest to
Ownership of Personal Property
lowest, based on annual dollar usage. (4) Classify the
E2495 Practice for Prioritizing Asset Resources in
inventory as A—the top 20%; B—the next 30%; and
Acquisition, Utilization, and Disposition
C—the last 50% of dollars usage, respectively. (5) Tag the
E2606Practice for Receipt Notification as a Result of
inventory with its appropriateABC classification and record
Tangible Property Movement
those classifications in the item inventory master records.
E2607Practice for Cannibalization/Reclamation of Service-
ableEquipmentComponentstoSupportDemandRequire-
abnormal spoilage, n—for government accounting under the
ments
FAR, abnormal spoilage may or may not be allowable cost.
E2608Practice for Equipment Control Matrix (ECM)
If the cost is deemed allowable, the cost would normally be
E2674Practice for Assessment of Impact of Mobile Data
charged consistently with normal spoilage.
Storage Device (MDSD) Loss
E2675Practice for Property Management System Outcomes
accelerated cost recovery system (ACRS), n—system of
depreciation for tax purposes mandated by the Economic
3. Terminology
Recovery Act (ERA) of 1981 and modified by the Tax
3.1 Terms and Definitions:
Reform Act of 1986. The type of property determines its
class. Instead of providing statutory tables, prescribed meth-
abandoned property, n—property of any type over which the
ods of depreciation are assigned to each class of property.
rightful owner has relinquished possession and any claim of
For 3, 5, 7, and 10-year classed, the relevant depreciation
an ownership interest.
method is the 200% declining balance method. For 15 and
20-year property, the appropriate method is the 150%
1
This terminology is under the jurisdiction of Committee E53 on Property
declining balance method switching to the straight-line
Management Systems and is the direct responsibility of Subcommittee E53.06 on
Terminology.
methodwhenitwillyieldalargerallowance.Forresidential
Current edition approved Oct. 15, 2010. Published November 2010. Originally
rental property (27.5 years) and nonresidential real property
approved in 2001. Last previous edition approved in 2010 as E2135–10. DOI:
(31.5 years), the applicable method is the straight-line
10.1520/E2135-10A.
2
method. A taxpayer may make an irrevocable election to
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
treat all property in one of the classes under the straight-line
Standards volume information, refer to the standard’s Document Summary page on
method. Property is statutorily placed in one of the classes.
the ASTM website.
3 The purpose of ACRS is to encourage more capital invest-
The last approved version of this historical standard is referenced on
www.astm.org. mentbybusinesses.Itpermitsafasterrecoveryoftheasset’s
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. Unite
...

This document is not anASTM standard and is intended only to provide the user of anASTM 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:E2135–10 Designation:E2135–10a
Standard Terminology for
1
Property and Asset Management
This standard is issued under the fixed designation E2135; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision.Anumber 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 terminology covers traditional property management definitions and some of the terms introduced in additional asset
management standards that are used most often and considered most important.As new standards are developed, new terms will
be added to this terminology in future revisions.
2. Referenced Documents
2
2.1 ASTM Standards:
E2221 Practice for Administrative Control of Property
E2306 Practice for Utilization and Disposal of Personal Property
E2452 Practice for Equipment Management Process Maturity (EMPM) Model
E2453 Practice for Determining the Life-Cycle Cost of Ownership of Personal Property
E2495 Practice for Prioritizing Asset Resources in Acquisition, Utilization, and Disposition
E2606 Practice for Receipt Notification as a Result of Tangible Property Movement
E2607 Practice for Cannibalization/Reclamation of Serviceable Equipment Components to Support Demand Requirements
E2608 Practice for Equipment Control Matrix (ECM)
E2674 Practice for Assessment of Impact of Mobile Data Storage Device (MDSD) Loss
E2675 Practice for Property Management System Outcomes
3. Terminology
3.1 Terms and Definitions:
abandoned property, n—property of any type over which the rightful owner has relinquished possession and any claim of an
ownership interest.
abandon, v—to give up all and any future claim to rights or interest in property.
abatementabatement, n—a reduction or cancellation of an assessed tax.
ABCmethodABCmethod, n—inventorymanagementmethodthatcategorizesitemsintermsofimportance.Thus,moreemphasis
is placed on higher dollar value items (“A”s) than on lesser dollar value items (“B”s), while the least important items (“C”s)
receive the least time and attention. Inventory should be analyzed frequently when using theABC method. The procedure for
ABCanalysisfollows:(1)Separatefinishedgoodsintotypes(chairsofdifferentmodels,andsoon);separaterawmaterialsinto
types (screws, nuts, and so on). (2) Calculate the annual dollar usage for each type of inventory (multiply the unit cost by the
expected future annual usage). (3) Rank each inventory type from highest to lowest, based on annual dollar usage. (4) Classify
theinventoryasA—thetop20%;B—thenext30%;andC—thelast50%ofdollarsusage,respectively.(5)Tagtheinventory
with its appropriate ABC classification and record those classifications in the item inventory master records.
abnormal spoilageabnormal spoilage, n—for government accounting under the FAR, abnormal spoilage may or may not be
allowable cost. If the cost is deemed allowable, the cost would normally be charged consistently with normal spoilage.
accelerated cost recovery system (ACRS), n—systemofdepreciationfortaxpurposesmandatedbytheEconomicRecoveryAct
(ERA) of 1981 and modified by the Tax Reform Act of 1986. The type of property determines its class. Instead of providing
statutory tables, prescribed methods of depreciation are assigned to each class of property. For 3, 5, 7, and 10-year classed, the
relevantdepreciationmethodisthe200%decliningbalancemethod.For15and20-yearproperty,theappropriatemethodisthe
150%decliningbalancemethodswitchingtothestraight-linemethodwhenitwillyieldalargerallowance.Forresidentialrental
1
ThisterminologyisunderthejurisdictionofCommitteeE53onPropertyManagementSystemsandisthedirectresponsibilityofSubcommitteeE53.06onTerminology.
´1
CurrenteditionapprovedJuly1,2010.PublishedJuly2010.Originallyapprovedin2001.Lastpreviouseditionapprovedin2007asE2135–07 .DOI:10.1520/E2135-10.
Current edition approved Oct. 15, 2010. Published November 2010. Originally approved in 2001. Last previous edition approved in 2010 as E2135–10. DOI:
10.1520/E2135-10A.
2
ForreferencedASTMstandards,visittheASTMwebsite,www.astm.org,[e-mail] Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

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E2135–10a
property(27.5years)andnonresidentialrealproper
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